Question

In a business venture a man can take profit of rs 3000 with a probability of0.4 or have a loss of rs 1500 with a probability of 0.6.

Answer 1

Answer:

300

Step-by-step explanation:

Given In a business venture a man can take profit of rs 3000 with a probability of 0.4 or have a loss of rs 1500 with a probability of 0.6.  His expected profit will be

We know that P = 0.4, and profit = 3000

Given P = 0.6 and loss = 1500

When P(x) = 0.4, x = 3000

When P(x) = 0.6, x = 1500

We get 0.4 x 3000 = 1200

and 0.6 x 1500 = 900

E(x) = ∑ x P(x)  

= 1200 – 900  

= 300

Answer 2

Answer:

rs 300

Step-by-step explanation:

profit of 3000 with  p(E)= 0.6

profit of - 1500 with p(E) = 0.4

so he can make (0.4 * 3000)  + (0.6*(-1500)) = 300