Answer (D) is correct . The expected value of an action is found by multiplying the probability of each possible outcome by its payoff and summing the products. It represents the long-term average payoff for repeated trials. In other words, expected value is the weighted average of probable outcomes.
Answer (A) is incorrect because The expected value is a long-range average; it is likely that the expected value will never be exactly achieved for a particular event.
Answer (B) is incorrect because Expected value does not consider present values.
Answer (C) is incorrect because Probability is only one component of expected value.
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