Question

Let X denote the profit of a trader. If the probability of his profit being Rs.2800 is 0.5, the probability of his loss being Rs.5000 is 0.3 and that of no profit and no loss is 0.2 then mean is

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