Generalized expected value calculation
Input(s)
\(P_{i}\): Possible Result of Probability from case " 1 " to " \(\mathrm{n}\) " (fraction)
\(V_{i}\): Contingency Value of Investment from case " 1 " to " \(\mathrm{n}\) " ($)
Output(s)
\(E V\): Expected Value (dimensionless)
Formula(s)
\[
\mathrm{EV}=\sum_{\mathrm{i}=1}^{\mathrm{n}}\left(\mathrm{P}_{\mathrm{i}}\right)\left(\mathrm{V}_{\mathrm{i}}\right)
\]
Reference(s)
Serpen, U., Petroleum Economics, Course Notes, ITU Petroleum and Natural Gas Engineering, Istanbul, Turkey, (2008) Page: 72.