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When asked to report his social security number Ian says, "999-99-1111." Ian has taken the larger 9-digit number and broken it down into smaller pieces, which makes it easier to recall. This is best explained by the concept of
Expected Value
The anticipated value of a variable, calculated as a weighted average of all possible values, with weights being their probabilities of occurrence.
Income
The total amount of money received by an individual or group over a certain period, often derived from work, investments, or business ventures.
Probability
Probability is a measure of the likelihood of an event to occur, expressed as a number between 0 and 1, where 0 indicates impossibility and 1 indicates certainty.
Certain Income
A guaranteed or fixed amount of money received, not subject to variations or uncertainties.
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