ProbabilityMCQMTP May 19Question 3400 of 187
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The probability distribution of the demand for a commodity is given belowX | 5 | 6 | 7 | 8 | 9 | 10P(X) | 0.05 | 0.10 | 0.30 | 0.40 | 0.10 | 0.05Expected value of demand will be

Options

A7.55\displaystyle 7.55
B7.85\displaystyle 7.85
C1.25\displaystyle 1.25
D8.35\displaystyle 8.35
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Correct Answer

Option a7.55\displaystyle 7.55

All Options:

  • A7.55\displaystyle 7.55
  • B7.85\displaystyle 7.85
  • C1.25\displaystyle 1.25
  • D8.35\displaystyle 8.35

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Detailed Solution & Explanation

**Probability of Union of Mutually Exclusive Events** Given: - P(A)=0.3\displaystyle P(A) = 0.3 - P(B)=0.4\displaystyle P(B) = 0.4 - Events A\displaystyle A and B\displaystyle B are mutually exclusive, which means: P(AB)=0P(A \cap B) = 0 Using the Addition Theorem of Probability: P(AB)=P(A)+P(B)P(AB)P(A \cup B) = P(A) + P(B) - P(A \cap B) P(AB)=0.3+0.40=0.7P(A \cup B) = 0.3 + 0.4 - 0 = 0.7 Hence, **Option A** is the correct answer.

About This Chapter: Probability

Paper

Paper 3: Quantitative Aptitude

Weightage

5-7 Marks

Key Topics

Probability Operations, Expected Value

A logic-heavy chapter dealing with random experiments, events (mutually exclusive, exhaustive), set theory probability, conditional probability, and Bayes' Theorem. It forms the basis for Theoretical Distributions.

View Official ICAI Syllabus

Exam Strategy Tip

Always draw a quick Venn Diagram or tree when faced with 'At least one' or 'Only A but not B' wording. It saves you from double-counting.

Key Concepts to Understand

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