Question

Excel's __________ function can be used to compute the expected value of a discrete random variable.

a. MEDIAN
b. VAR
c. AVERAGE
d. SUMPRODUCT

Answer 1

Answer: c.AVERAGE

Excel's AVERAGE function can be used to compute the expected value of a discrete random variable.

The expected value of a discrete random variable can be calculated using Excel's AVERAGE function.

It is sometimes referred to as the mean, and it is calculated by multiplying each possible outcome by its probability of occurrence and then adding the results.