Conditional mean

See also: Mode, Median, Mean, Statistical descriptions of model outputs, Presenting results introduction

The conditional mean is used when one is only interested in the expected outcome of a portion of the output distribution.

For example, the expected loss that would occur should the project fail to make a profit. The conditional mean is found by calculating the average of only those data points that fall into the scenario in question. In the example of expected loss, it would be found by taking the average of all the profit output's data points that were negative.

The conditional mean is sometimes accompanied by the probability of the output falling within the required range. In the loss example, it would be the probability of producing a negative profit.

Read on: Range

 

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