MHT CET · Maths · Probability
Rajesh has just bought a VCR from Maharashtra Electronics and the shop offers after sales service contract for Rs. 1000 for the next five years. Considering the experience of VCR users, the following distribution of maintenance expenses for the next five years is formed.
The expected value of maintenance cost is
- A Rs. 800
- B Rs. 770
- C Rs. 700
- D Rs. 900
Answer & Solution
Correct Answer
(B) Rs. 770
Step-by-step Solution
Detailed explanation
\(\begin{aligned} & \text { Expected value }=\sum \mathrm{p}_{\mathrm{i}} \mathrm{x}_{\mathrm{i}} \\ & =(0)(0.35)+(500)(0.25)+(1000)(0.15)+(1500)(0.1) \\ & +(2000)(0.08)+(2500)(0.05)+(3000)(0.02) \\ & =0+125+150+150+160+125+60=770\end{aligned}\)
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