alleryStart learning →A draw pays Rs 1000 with chance 0.01 and Rs 100 with chance 0.05, else nothing. Expected payoff?
ARs 5
BRs 105
CRs 15
DRs 10
Answer & Solution
Correct answer: C. Rs 15
Add each prize times its chance: 1000 x 0.01 + 100 x 0.05 = 10 + 5 = Rs 15.
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