Repair outcomes: 70% nil, 20% Rs 50,000, 10% Rs 3,00,000. The expected value of the obligation is:
ARs 40,000
BRs 10,000
CRs 1,15,000
DRs 3,50,000
Answer & Solution
Correct answer: A. Rs 40,000
Weighting gives 20% of 50,000 which is 10,000 plus 10% of 3,00,000 which is 30,000, so Rs 40,000.
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