Expected value

We all spend time making decisions with some risk involved. We look at each situation and consider the likelihood that something will happen as well as if it would be worth it.
For example, whether to sprint across the street when the sign says “don’t walk.”

Expected value is then the odds of something happening multiplied by the cost of the expected value of the situation.

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Here's a Better Way to Deal With Life's Risks

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time.com
Here's a Better Way to Deal With Life's Risks

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