What are expected values?
also kindly explain expected values for categorical outcomes as well as numerical outcomes. and their difference.
In short, expected values are what outcome we expect to get on average after infinitely many trials.
In terms of numeric outcomes, this is a sort of weighted average, where the more likely an outcome is, the more it’s taken into consideration when estimating the end result.
As for categorical variables, the expected outcome usually doesn’t tell us much because to calculate it we need to assign some numeric representation to each outcome. Otherwise, there isn’t a way to estimate the expected value.