Formula 7.16
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.