Question

If it rains on Republic Day parade an Auto Riksha earns Rs. $240,$ on the other hand it does not rain he loses Rs. $60$. The probability of rain on Republic Day parade is $0.6$. What is the value of expected income of an Auto Riksha on Republic Day parade?

• A. Rs. $150$
• B. Rs. $45$
• C. Rs. $120$
• D. Rs. $10$

Answer 1

The correct option is C Rs. $120$

Probability of rain on a republic day $=0.6=p_1$

Probability that it won't rain $=0.4=p_2$

$\Rightarrow n_1=Rs.240$ $n-2=Rs.180$

$\Rightarrow$ The probability that it rains for half of the day and the rest is sunny $=n_1{p}_2$

$\therefore$ Expectation $=n_1{p}_1+n_2{p}_2-n_1{p}_2$

$=0.6\times 240+0.4\times 180-0.4\times 240$

$=216-96$

$=Rs.120$

Hence, the answer is Rs. $120.$