Expected value (EV)
Lora Rosenthal
CEO/President Touchdown Abstract Services, Inc.; NYS Lic Real Estate Broker at Touchdown Homes, Inc.
? The sum of the weighted averages of all possible outcomes of a probability distribution. Probability distribution is the collection of all possible outcomes for an event and their corresponding probabilities of occurrence. The probabilities of occurrence for each outcome are used as weights. The sum of each possible value multiplied by its probability of occurrence equals the expected value of the outcome. EVs can be calculated for various outcomes such as net operating incomes, after-tax cash flows, and internal rates of return (IRRs).
Touchdown Abstract Services, Inc.
350 Moffitt Boulevard - 2nd Floor
Islip, New York 11751
Phone: (631) 224-7196
Fax: (631) 224-7197