Business A-Level
Expected Value (EV)
What Expected Value (EV) means in Business A-Level, as defined for Pearson Edexcel.
Definition of Expected Value (EV)
The financial outcome of a decision option, calculated by multiplying the probability of an event by its forecast economic return.
Topics that use Expected Value (EV)
- Decision-making techniques (Pearson Edexcel A-Level)
Related terms
Using Expected Value (EV) in the exam
Definition questions usually carry one or two marks, and examiners look for the precise wording. Write the definition from memory, check it against the version above, and then use the term in a longer answer on the same topic so it sticks.
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