Question

A measure of the average value of a random variable is called a(n):

a. variance
b. standard deviation
c. expected value
d. coefficient of variation

Answer 1

Option C) Expected value

Explanation:

We have to fill the blank to complete the sentence.

• Expected value is defined as the as mean value of the expected outcome of a given investment.

• It is calculated as the weighted average of all possible values of a random variable based on their probabilities.

Thus,

A measure of the average value of a random variable is called expected value.