CA Foundation Exam > CA Foundation Questions > When expected value is negative the result is...
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When expected value is negative the result is
- a)favourable
- b)unfavourable
- c)both
- d)none to the player
Correct answer is option 'B'. Can you explain this answer?
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When expected value is negative the result isa)favourableb)unfavourabl...
Negative expected value and its implications
Definition of expected value: Expected value is the sum of the probability of each possible outcome of a random variable multiplied by its respective outcome.
When expected value is negative: When the expected value is negative, it means that the player can expect to lose money in the long run. This is because the sum of all possible outcomes, when multiplied by their respective probabilities, results in a negative value.
Implications:
- It indicates that the game or the bet is unfavourable to the player and they should avoid it.
- A negative expected value is often the case in casino games, where the odds are always in favour of the house.
- It is also important to note that a negative expected value does not mean that the player will always lose money in the short term, but rather, in the long run, the player is expected to lose more than they win.
Conclusion: Therefore, it is crucial for players to understand the concept of expected value before making any bets or playing any games. They should avoid playing games with negative expected values and look for games with positive expected values, where they have a higher chance of winning in the long run.
Definition of expected value: Expected value is the sum of the probability of each possible outcome of a random variable multiplied by its respective outcome.
When expected value is negative: When the expected value is negative, it means that the player can expect to lose money in the long run. This is because the sum of all possible outcomes, when multiplied by their respective probabilities, results in a negative value.
Implications:
- It indicates that the game or the bet is unfavourable to the player and they should avoid it.
- A negative expected value is often the case in casino games, where the odds are always in favour of the house.
- It is also important to note that a negative expected value does not mean that the player will always lose money in the short term, but rather, in the long run, the player is expected to lose more than they win.
Conclusion: Therefore, it is crucial for players to understand the concept of expected value before making any bets or playing any games. They should avoid playing games with negative expected values and look for games with positive expected values, where they have a higher chance of winning in the long run.
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When expected value is negative the result isa)favourableb)unfavourabl...
Expected value is negative then the result is unfavourable because that's means it is overdraft that's why it is Negative.
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When expected value is negative the result isa)favourableb)unfavourablec)bothd)none to the playerCorrect answer is option 'B'. Can you explain this answer?
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When expected value is negative the result isa)favourableb)unfavourablec)bothd)none to the playerCorrect answer is option 'B'. Can you explain this answer? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about When expected value is negative the result isa)favourableb)unfavourablec)bothd)none to the playerCorrect answer is option 'B'. Can you explain this answer? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for When expected value is negative the result isa)favourableb)unfavourablec)bothd)none to the playerCorrect answer is option 'B'. Can you explain this answer?.
When expected value is negative the result isa)favourableb)unfavourablec)bothd)none to the playerCorrect answer is option 'B'. Can you explain this answer? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about When expected value is negative the result isa)favourableb)unfavourablec)bothd)none to the playerCorrect answer is option 'B'. Can you explain this answer? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for When expected value is negative the result isa)favourableb)unfavourablec)bothd)none to the playerCorrect answer is option 'B'. Can you explain this answer?.
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