Mathematics, 28.03.2020 00:53 smithcj0505
Oil wells are expensive to drill, and dry wells are a great concern to oil exploration companies. The domestic oil and natural gas producer Aegis Oil, LLC describes on its website how improvements in technologies such as three-dimensional seismic imaging have dramatically reduced the number of dry (nonproducing) wells it and other oil exploration companies drill. The following sample data for wells drilled in 2005 and 2012 show the number of dry wells that were drilled in each year.
2005 2012
Wells Drilled 119 162
Dry Wells 24 18
a. Formulate the null and alternative hypotheses that can be used to test whether the wells drilled in 2005 were more likely to be dry than wells drilled in 2012.
b. What is the point estimate of the proportion of wells drilled in 2005 that were dry?
c. What is the point estimate of the proportion of wells drilled in 2012 that were dry?
d. What is the p-vvalue of your hypothesis test? At a = .025, what conclusion do you to draw from your results?
Answers: 3
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