A) \[\frac{400}{9}loss\]
B) \[\frac{400}{3}gain\]
C) 0
D) \[\frac{400}{3}loss\]
Correct Answer: C
Solution :
Let A =Probability that outcome is 5 or \[6=\frac{1}{3}\] B = Probability that outcome is other than 5 or\[6=\frac{2}{3}\] \[\therefore \]Expected gain/loss \[=A\times 100+BA(-50+100)+{{B}^{2}}A(-50-50+100)\]\[+{{B}^{3}}(-150)\] \[=\frac{1}{3}\times 100+\frac{2}{3}.\frac{1}{3}(50)+\frac{4}{9}.\frac{1}{3}(0)+{{\left( \frac{2}{3} \right)}^{3}}(-150)\] \[=\frac{100}{3}+\frac{100}{9}-\frac{8}{27}\times 150=0\]You need to login to perform this action.
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