A) \[\frac{400}{9}loss\]
B) 0
C) \[\frac{400}{3}gain\]
D) \[\frac{400}{3}gain\]
Correct Answer: B
Solution :
Let w denotes probability that outcomes 5 or 6 |
\[\left( w=\frac{2}{6}=\frac{1}{3} \right)\] |
Let L denotes probability that outcome 1, 2, 3,4 |
\[\left( L=\frac{4}{6}=\frac{2}{3} \right)\] |
Expected Gain/Loss |
\[=w\times 100+Lw(-50+100)+{{L}^{2}}w(-50-50+100)+{{L}^{3}}(-150)\] |
\[=\frac{1}{3}\times 100+\frac{2}{3}.\frac{1}{3}(50)+{{\left( \frac{2}{3} \right)}^{2}}\left( \frac{1}{3} \right)(0)+{{\left( \frac{2}{3} \right)}^{2}}(-150)=0\] |
You need to login to perform this action.
You will be redirected in
3 sec