A game pays Rs 100 with probability 0.2 and nothing otherwise. What is the expected payoff?
ARs 80
BRs 20
CRs 10
DRs 50
Answer & Solution
Correct answer: B. Rs 20
Multiplying the prize by its probability gives 100 x 0.2 = Rs 20.
Keep practising Probability
Browse all Probability questions for CA Foundation, or explore more Quantitative Aptitude topics.
Related questions
In Kolmogorov's formulation, probability is a measure on what?The product rule P(A and B) = P(A)P(B) holds when A and B are?How is P(A|B) read?Which branch of physics needs probability theory to describe sub-atomic phenomena?The chance that both A and B occur on a single trial is called?The event 'A does not occur' is known as which of A?Events that cannot occur at the same time on one trial are called?Which theory do product designers use to reduce the probability of failure?