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MHT CET · Maths · Probability

A bakerman sells 5 types of cakes. Profit due to sale of each type of cake is respectively Rs 2 , Rs 2.5 , Rs 3, Rs 1.5 and Rs 1 . The demands for these cakes are \(20 \%, 5 \%, 10 \%\) and \(15 \%\) respectively, then the expected profit per cake is

  1. A Rs 1.725
  2. B Rs 0.01725
  3. C Rs 0.1725
  4. D Rs 17.25
Verified Solution

Answer & Solution

Correct Answer

(A) Rs 1.725

Step-by-step Solution

Detailed explanation

\(\text { Expected value }=\Sigma \mathrm{p}_{\mathrm{i}} \mathrm{x}_{\mathrm{i}}\)
\(=(2)\left(\frac{20}{100}\right)+(2.5)\left(\frac{5}{100}\right)+(3)\left(\frac{10}{100}\right)+(1.5)\) \(\left(\frac{50}{100}\right)+(1)\left(\frac{15}{100}\right)\)
\(=0.4+0.125+0.3+0.75+0.15=1.725\)