Examlex
Eric has an IQ of 100 at age 5 and an IQ of 100 at age 22. What can be said about his intelligence in comparison to others his age?
Expected Value
The weighted average of all possible values of a random variable, with weights being their respective probabilities.
Probability
A measure quantifying the likelihood of a specific event occurring, often expressed as a number between 0 and 1.
Von Neumann-Morgenstern Utility Function
A utility function that assumes individuals can rank their preferences under uncertainty, used in expected utility theory to describe choices.
Insurance
A financial product that provides protection against financial loss or harm, in exchange for the payment of a premium.
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