Expected Value

Table of Contents

• Purpose
• When to Use
• What Is It?
• Workflow
• Common Patterns
• Guardrails
• Quick Reference

Purpose

Expected Value (EV) provides a framework for making rational decisions under uncertainty by calculating the probability-weighted average of all possible outcomes. This skill guides you through identifying scenarios, estimating probabilities and payoffs, computing expected values, and interpreting results while accounting for risk preferences and real-world constraints.

When to Use

Use this skill when: