The basic expected value formula is the probability of an event Of course, calculating expected value (EV) gets more complicated in real life. Since this series converges absolutely, the expected value of X is k. This is because an expected value calculation must not. For the expected value, you need to evaluate the integral ∫40yf(y)dy=∫y3(4 −y)64dy. It follows directly from the discrete case definition that if X is a constant random variablei. Advisors Share Their Favorite Tech Tools Guides Stock Basics Economics Basics Options Basics Exam Prep Series 7 Exam CFA Level 1 Series 65 Exam. And this is where I am seeing were I am having problems, what goes where and why? Some expected value calculations will be based on money, as in stock investments. Calculate the sum of the products. For that reason, analysts will create models that approximate stock market situations kartenspiel schnauz use those models for their predictions.