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In probability theory, the expected value (also called expectation, expectancy, expectation operator, mathematical expectation, mean, expectation value, or first moment) is a generalization of the weighted average. Informally, the expected value is the mean of the possible values a random variable can take, weighted by the probability of those ...
This special case is how expected value of perfect information and expected value of sample information are calculated where risk neutrality is implicitly assumed. For cases where the decision-maker is risk averse or risk seeking , this simple calculation does not necessarily yield the correct result, and iterative calculation is the only way ...
In decision theory, the expected value of sample information (EVSI) is the expected increase in utility that a decision-maker could obtain from gaining access to a sample of additional observations before making a decision. The additional information obtained from the sample may allow them to make a more informed, and thus better, decision ...
p. -value. In null-hypothesis significance testing, the p-value[note 1] is the probability of obtaining test results at least as extreme as the result actually observed, under the assumption that the null hypothesis is correct. [2][3] A very small p -value means that such an extreme observed outcome would be very unlikely under the null hypothesis.
Expected value of perfect information. In decision theory, the expected value of perfect information (EVPI) is the price that one would be willing to pay in order to gain access to perfect information. [1] A common discipline that uses the EVPI concept is health economics. In that context and when looking at a decision of whether to adopt a new ...
Expectancy–value theory was originally created in order to explain and predict individual's attitudes toward objects and actions. Originally the work of psychologist Martin Fishbein [citation needed], the theory states that attitudes are developed and modified based on assessments about beliefs and values.
Expected value of including uncertainty. In decision theory and quantitative policy analysis, the expected value of including uncertainty (EVIU) is the expected difference in the value of a decision based on a probabilistic analysis versus a decision based on an analysis that ignores uncertainty. [1][2][3]
Extreme value theory or extreme value analysis (EVA) is the study of extremes in statistical distributions. It is widely used in many disciplines, such as structural engineering, finance, economics, earth sciences, traffic prediction, and geological engineering. For example, EVA might be used in the field of hydrology to estimate the ...