Expectation¶
Formula¶
\[
\mathbb{E}[X] = \sum_x x\,p(x) \quad\text{or}\quad \mathbb{E}[X] = \int x\,p(x)\,dx
\]
Parameters¶
- \(X\): random variable
- \(p(x)\): pmf or pdf
What it means¶
Long-run average value of \(X\).
What it's used for¶
- Summarizing the average outcome of a random variable.
- Computing risk or average loss.
Key properties¶
- Linearity: \(\mathbb{E}[aX+bY]=a\mathbb{E}[X]+b\mathbb{E}[Y]\)
- \(\mathbb{E}[X]=\sum_x x\,P(X=x)\) for discrete
Common gotchas¶
- Expectation may not exist if tails are too heavy.
- \(\mathbb{E}[g(X)]\neq g(\mathbb{E}[X])\) in general.
Example¶
For a fair die, \(E[X]=(1+2+3+4+5+6)/6=3.5\).
How to Compute (Pseudocode)¶
Input: distribution/model (or sample-based estimate) and target function/value definition
Output: expectation quantity
if a discrete distribution is available:
compute a weighted sum over support values
if a continuous density is available:
compute an integral (analytically or numerically)
if estimating from samples:
compute the sample average of the target quantity
return the expectation (or estimate)
Complexity¶
- Time: Depends on representation (support size, numerical quadrature, or sample count); sample averages are typically \(O(n)\)
- Space: \(O(1)\) extra accumulation space for streaming/sample-average computations (more for grids/tables)
- Assumptions: Exact analytic expectations and numerical/sample estimates use different workflows and error tradeoffs