1. What is Expected Value (EV)?

Expected Value (EV) is a fundamental concept in probability theory that represents the average outcome if an experiment (or bet) is repeated many times. In gambling terms, it tells you how much you can expect to win or lose per bet on average.

2. How Does the Calculator Work?

The calculator uses the Expected Value formula:

Where:

• \( Bet \) — Amount wagered
• \( Win\:Probability \) — Probability of winning (0 to 1)
• \( Payout \) — Multiple of bet won when successful
• \( Loss\:Probability \) — Probability of losing (0 to 1)

Explanation: A positive EV indicates a profitable bet in the long run, while negative EV means you'll lose money on average.

3. Importance of EV Calculation

Details: Calculating EV helps gamblers and investors make informed decisions by quantifying the long-term value of a bet or investment.

4. Using the Calculator

Tips: Enter bet amount in dollars, probabilities as decimals between 0 and 1, and payout as a multiple (e.g., 2 for 2:1 payout). Win and loss probabilities should sum to 1 or less.

5. Frequently Asked Questions (FAQ)

Q1: What does a positive EV mean?
A: A positive EV indicates a bet that's profitable in the long run. The higher the EV, the better the bet.

Q2: What's considered a "good" EV?
A: Any positive EV is theoretically good, but practical considerations like variance and bankroll must also be considered.

Q3: How does this apply to casino games?
A: Most casino games have negative EV for the player, which is how the house maintains its edge.

Q4: What if win + loss probabilities don't sum to 1?
A: The remaining probability represents pushes/ties or other outcomes that return the original bet.

Q5: Can EV be used for sports betting?
A: Yes, EV calculations are fundamental to successful sports betting strategies.