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    Question

    A person throws a biased coin on which head appears in 30%

    of situations. If the person gets Rs. 20 for each tail and loses Rs. 30 for each head, then find the average amount lost or gained by him per toss.
    A Rs. 3 gain Correct Answer Incorrect Answer
    B Rs. 1 loss Correct Answer Incorrect Answer
    C Rs. 2 loss Correct Answer Incorrect Answer
    D Rs. 5 gain Correct Answer Incorrect Answer

    Solution

    Let, number of times the coin was tossed be ‘x’
    Probability of getting head = 0.3
    Probability of getting tail = 0.7
    Number of times of getting head = 0.3x
    Number of times of getting tail = 0.7x
    Required average amount lost per toss = (0.7x × 20 – 0.3x × 30)/x
    = (14x – 9x)/x
    = 5x/x = Rs. 5 gain

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