Expected Values

Using Probability, calculating the expected amount you’d gain based on probability.

Example:

Imagine a raffle where you have a $\frac{1}{1000}$ chance of winning a \500$.Yougeteachraffleticketforfree.Eachraffleticketwouldexpecttowinyou$$0.50$($\frac{1}{1000} \times $500 + \frac{999}{1000} \times 0$).

Linearity of Expectation:

Simply says the following: $E(X+Y)=E(X)+E(Y)$