When it comes to betting, understanding Expected Value (EV) is crucial for smarter wagers. EV quantifies the average amount one can expect to win or lose per bet based on probabilities. Here’s a quick breakdown:
- Positive EV: Indicates a profitable bet over time.
- Negative EV: Suggests a losing bet in the long run.
Calculating EV involves multiplying each outcome’s probability by its corresponding payoff and summing the results. Grasping this concept helps bettors make informed decisions, maximizing potential gains and minimizing losses.