An insurance agent sells policies. The expected number of policies sold daily is 2.5. If he earns ₹1000 per policy sold, his expected daily earnings are:
An insurance agent sells policies. The expected number of policies sold daily is 2.5. If he earns ₹1000 per policy sold, his expected daily earnings are:
- A. ₹2000
- B. ₹2500
- C. ₹3000
- D. ₹5000
Answer: B) ₹2500
Explanation: By properties of expectation, E(aX) = aE(X). Here, a = 1000 and E(X) = 2.5. So, Expected earnings = 1000 × 2.5 = ₹2500.
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