Let $X$ be a random variable. For sake of simplicity assume it is uniformly distributed from $[0,1]$. Let $c$ be a constant in the same interval.
How do I express $E[\max(X,c)]$ in such a case?
Let $X$ be a random variable. For sake of simplicity assume it is uniformly distributed from $[0,1]$. Let $c$ be a constant in the same interval.
How do I express $E[\max(X,c)]$ in such a case?
$$\operatorname{E}[\max(X,c)] = \operatorname{E}[X \mid X > c]\Pr[X > c] + \operatorname{E}[c \mid X \le c]\Pr[X \le c] = \frac{c+1}{2} \cdot (1-c) + c \cdot c.$$ The first equality is applicable for any distribution on $X$. The second applies specifically to the case where $X \sim \operatorname{Uniform}(0,1)$ with $c \in (0,1)$.