NIMCET 2019 Question Paper with solutions

Question : 17 of 120

Marks: +1, -0

If a man purchases a raffle ticket, he can win a first prize of Rs.5,000 or a seconds prize of Rs. 2,000 with probabilities 0.001 and 0.003 respectively. What should be a fair price to pay for the ticket ?

Rs. 11
Rs. 15
Rs. 2000
None

Validate

Solution:

Fair price of ticket = Expected value of ticket

=Σp_ix_i

=0001×5000+0003×2000

=5+6

=11

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