If a man purchases a raffle ticket, he can win a first prize of Rs. 5,000 or a second prize of Rs. 2,000 with probabilities 0.001 and 0.003 respectively. What should be a fair price to pay for the ticket?

If a man purchases a raffle ticket, he can win a first prize of Rs. 5,

1.	If a man purchases a raffle ticket, he can win a first prize of Rs. 5,000 or a second prize of Rs. 2,000 with probabilities 0.001 and 0.003 respectively. What should be a fair price to pay for the ticket?
A.	Rs. 11
B.	Rs. 15
C.	Rs. 2,000
D.	None of these
Answer» B. Rs. 15

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If a man purchases a raffle ticket, he can win a first prize of Rs. 5,000 or a second prize of Rs. 2,000 with probabilities 0.001 and 0.003 respectively. What should be a fair price to pay for the ticket?

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