Mathematics, 25.04.2020 04:07 lillianbrowning10
An oil-drilling company knows that it costs $65,000 to sink a test well. If oil is hit, the income for the drilling company will be $550,000. If only natural gas is hit, the income will be $428,373. If nothing is hit, there will be no income. If the probability of hitting oil is 1/65 and if the probability of hitting gas is 1/35, what is the expectation for the drilling company? Should the company sink the test well?
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An oil-drilling company knows that it costs $65,000 to sink a test well. If oil is hit, the income f...
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