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Expected Value
Content from Expected Value.
Their llms.txt
The beginning of the file, from our validated copy saved 2026-10-26T10:04:00.658Z. Cached copy · Source on expectedvalue.co.uk
# Expected Value
> Content from Expected Value.
## Pillar topics
- [Cognitive Biases](https://expectedvalue.co.uk/category/cognitive-biases/): Your brain is wired to misjudge probability. Anchoring, availability bias, the gamblers fallacy, sunk cost thinking — these mental shortcuts helped our ancestors survive but they consistently lead to poor decisions in modern life. Learn to recognise these biases in yourself and others, and discover practical techniques to counteract them.
- [Fundamentals](https://expectedvalue.co.uk/category/fundamentals/): Master the building blocks of probabilistic thinking. From Bayes theorem and expected value calculations to base rates and conditional probability, these guides lay the mathematical and conceptual foundation you need to make better decisions under uncertainty. Whether you are new to probability or brushing up, start here.
- [Investing](https://expectedvalue.co.uk/category/investing/): Markets are probability machines. Every investment is a bet on an uncertain future, and the best investors think in expected values, not certainties. Explore how probabilistic thinking applies to portfolio construction, risk management, index investing, and avoiding the behavioural traps that cost most investors dearly.
- [Strategy](https://expectedvalue.co.uk/category/strategy/): From career choices to business decisions, strategy is applied probability. Learn decision frameworks like expected value analysis, scenario planning, pre-mortems, and Kelly criterion sizing. These practical guides help you structure complex decisions and make consistently better choices when the stakes are high.
- [Tools & Resources](https://expectedvalue.co.uk/category/tools-resources/): Practical tools and resources for applying probabilistic thinking in your daily life. Calculators, spreadsheets, book recommendations, courses, and software that help you quantify uncertainty, track your predictions, and improve your calibration over time.
## Guides and articles
- [How Insurance Companies Use Probability to Make Money](https://expectedvalue.co.uk/blog/how-insurance-companies-use-probability/): Insurance is a negative-EV bet - for you. Here's how actuarial science, risk pooling, and the law of large numbers turn that into reliable profit.
- [When Is Travel Insurance Worth It? The EV Case](https://expectedvalue.co.uk/blog/travel-insurance-expected-value/): Travel insurance is usually negative-EV, yet often the right call. The expected-value rule for when a risk is worth insuring - and when to self-insure.
- [Expected Value Thinking: Better Decisions Under Uncertainty](https://expectedvalue.co.uk/blog/expected-value-explained/): Expected value thinking: the most important concept in decision-making under uncertainty. What it is, how to calculate it, when to apply it.
- [Nassim Taleb's Ideas: Black Swan, Antifragile & More](https://expectedvalue.co.uk/blog/nassim-taleb-ideas-explained/): A guide to Nassim Taleb's key ideas - Black Swans, Antif
…
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