CMA Foundation · Fundamentals of Business Mathematics and Statistics · Probability
A game at a Kolkata fair costs Rs 10 to play. A fair die is thrown once and the player receives Rs 6 times the number shown. What is the player's expected net gain per play?
The expected net gain is Rs 11 per play. The expected die score is 3.5, so the expected payout is 6 times 3.5, which is Rs 21. Subtracting the Rs 10 entry fee leaves Rs 11. Quoting Rs 21 forgets the cost of playing.
- ARs 11Correct
- BRs 21
- CRs 10
- DRs 12
Explanation
Expected number on a die = 3.5, so expected receipt = 6 x 3.5 = Rs 21. Net gain = 21 - 10 = Rs 11. Rs 21 ignores the entry fee.
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