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Question: Answered & Verified by Expert
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
MathematicsProbabilityMHT CETMHT CET 2021 (21 Sep Shift 2)
Options:
  • A Rs 1.725
  • B Rs 0.01725
  • C Rs 0.1725
  • D Rs 17.25
Solution:
2888 Upvotes Verified Answer
The correct answer is: Rs 1.725
$\begin{aligned} & \text { Expected value }=\Sigma \mathrm{p}_{\mathrm{i}} \mathrm{x}_{\mathrm{i}} \\ & =(2)\left(\frac{20}{100}\right)+(2.5)\left(\frac{5}{100}\right)+(3)\left(\frac{10}{100}\right)+(1.5)\left(\frac{50}{100}\right)+(1)\left(\frac{15}{100}\right) \\ & =0.4+0.125+0.3+0.75+0.15=1.725\end{aligned}$

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