A mining company is considering two sites on which to dig, described as follows: Site A: Profit if diamonds are found: $80 million. Loss if no diamonds are found: $20 million. Probability of finding diamonds: 0.2 Site B: Profit if diamonds are found $100 million. Loss if no diamonds are found $16 million. Probability of finding diamonds: 0.1 What is the expected profit for each site? site A: $0 million; site B: $10 million site A: $16 million: site B: $10 million site A: $0 million; site B: -$4.4 million site A: $16 million; site B: -$4.4 million

A mining company is considering two sites on which to dig, described as follows: Site A: Profit if diamonds are found: $80 million. Loss if no diamonds are found: $20 million. Probability of finding diamonds: 0.2 Site B: Profit if diamonds are found $100 million. Loss if no diamonds are found $16 million. Probability of finding diamonds: 0.1 What is the expected profit for each site? site A: $0 million; site B: $10 million site A: $16 million: site B: $10 million site A: $0 million; site B: -$4.4 million site A: $16 million; site B: -$4.4 million

Name: A mining company is considering two sites on which to dig, described
Uploaded: 2024-03-20T07:06:41.000Z
Channel: Bartleby
Description: A mining company is considering two sites on which to dig, described as follows:Site A: Profit if diamonds are found: $80 million.Loss if no diamonds are found: $20 million.Probability of finding diamonds: 0.2Site B: Profit if diamonds are found $10

A First Course in Probability (10th Edition)

10th Edition

ISBN:9780134753119

Author:Sheldon Ross

Publisher:Sheldon Ross

Chapter1: Combinatorial Analysis

Section: Chapter Questions

Problem 1.1P: a. How many different 7-place license plates are possible if the first 2 places are for letters and...

See similar textbooks

Related questions

Q: a. Complete the PDF Table. List the X values, where X is the profit, from smallest to largest. Round…

A: Solution: Note: Since its saying 'X' represents profit from smallest to largest, so i am considering…

Q: The odds of losing is the ratio of the number of unsuccessful outcomes to the number of successful…

A: Given:The odds of event occurring is 1:2.Thus, it implies:Number of events will occur=1Number of…

Q: 1. The chance of success of an event is the square of the chance of a second event but the odds…

Q: An engineering student who didn't study for his exam, just randomly guesses the correct answer. Each…

Q: If the famous insurance company, Brendan's of Jacksonville, insures a $3 million Monet painting for…

A: In the given case there are two possibilities The claim will arrive if painting gets stolen and the…

Q: Oxnard Petro Ltd. is buying hurricane insurance for its off-coast oil drilling platform. During the…

A: It is given that the probability of total loss of only the above water superstructure is 0.40, the…

Q: If the probability of choosing a red chip from a bucket is 0.4, What is the probability of not…

A: We have the probability of choosing a red chip from a bucket is 0.4

Q: The chances of winning are often written in terms of odds rather than probabilities. The odds of…

A: Total number of cards = 52 Number of 7 of clubs = 1 If a random card is selected, the possible…

Q: 1f. It has been reported that the first week in May NC has an average daily temperature of 88…

A: Average daily temperature of first week in May is 88 degrees. The first week had recorded…

Q: Based on data, an insurance company estimates that a particular customer from a certain group has a…

A: It is given that-Probability that the customer will have accident next year = 0.039Average insurance…

Q: s on the table at the moment. You will win $1 if you randomly draw a black card, but you will lose…

A: Black Cards 20 Red Cards 10 Black Cards win $1 20 Red Cards lose $2 10

Q: The four outcomes are: both choose split, both choose steal, Player 1 chooses steal and player 2…

A: Below are the 3 scenarios that will occur according to the question. If both the players choose to…

Q: ou own your own consulting firm in Business Information Analytics. You charge $350 and hour. A…

A: Given: Sample size (n)=4Probability (p)=0.25q=1-p =1-0.25 =0.75 X follows binomial distribution…

Q: n a certain California city, projections for the next year are that there is a 20% chance that…

A: x P(x) x*P(x) +200 0.20 40 +300 0.50 150 -800 0.30 -240

Q: The Harriet Hotel in downtown Boston has 100 rooms that rent for $150 per night. It costs the hotel…

A: Given information:Available number of rooms in hotel = 100Rent of room per night = $150Variable…

Q: A company is trying to decide if they should make a bid on a project that would generate 4500,000 in…

Q: A Chance magazine article examined the impact of an applicant's ethnicity on the likelihood of…

A: From given data table, Total number of all applicants = 1755 number of white applicants = 946…

Q: case of rain. Based on expected values, which is David's wiser choice in this situation? David…

A: The expected net profit is, $100,000. The reduced net profit is , $40,000. The probability of rain…

Q: Year Discussion Questions 2. The following is the experience of Insurer A for the last three years:…

A: “Since you have posted a question with multiple sub-parts, we will solve first three subparts for…

Q: A die is rolled. If an odd number turns up, we win an amount equal to this number; if an even number…

A: The outcome of rolling a die is {1, 2, 3, 4, 5, 6}.

Q: The Cyclones play Baylor on Tuesday. If the odds for the Cyclones winning are 7:2, what is the…

A: The odds for the Cyclones winning are 7:2

Q: Consider a carnival game where a player is given two chances to throw a ball to hit a moving target.…

A: Binomial distribution: The binomial distribution gives the probability of number of successes out of…

Q: Examine the image below and then answer all parts of the question under it. Enter your answers as…

A: a) There are 4 yellow objects in 10 objects.So, P(yellow)=410=0.4b) There are 3 hearts in the 10…

Q: Kindly solve the following problems by showing the complete solution. 1. A geologist has collected…

A: To find the probability that all specimens of one of the two types of rock are selected for…

Q: There is an option of paying $100 to have research conducted to better predict which state of nature…

A: we need to use the conditional probability formula.Let's denote the events as follows: A: State of…

Q: In each scenario, identify the population, the sample, and any population parameters or sample…

A: The objective is to identify the population, sample, and any population parameters or sample…

Q: A company is trying to decide if they should make a bid on a project that would generate 450,000 in…

A: Given : Cost of bid development = $ 100,000 Profit generated if company wins the bid = $ 450,000…

Q: What did the insurance company charge Charlie for this policy if the company expected to break even?

A: Here given Charlie buys a one-year term home insurance policy for $p, that will pay $200,000 in the…

Q: Delaney is about to take a final exam that consists of 20 questions. To motivate her to study, her…

Q: 3. What would be the yearly premium for a $50,000 insurance policy against accidental household…

A: As you have posted multiple questions, we have provided answer for first question only as per our…

Q: he proprietor of Midland Construction Company has to decide between two projects. He estimates that…

Concept explainers

Contingency Table

A contingency table can be defined as the visual representation of the relationship between two or more categorical variables that can be evaluated and registered. It is a categorical version of the scatterplot, which is used to investigate the linear relationship between two variables. A contingency table is indeed a type of frequency distribution table that displays two variables at the same time.

Binomial Distribution

Binomial is an algebraic expression of the sum or the difference of two terms. Before knowing about binomial distribution, we must know about the binomial theorem.

Topic Video

Question

A mining company is considering two sites on which to dig, described as follows:
Site A: Profit if diamonds are found: $80 million.
Loss if no diamonds are found: $20 million.
Probability of finding diamonds: 0.2
Site B: Profit if diamonds are found $100 million.
Loss if no diamonds are found $16 million.
Probability of finding diamonds: 0.1
What is the expected profit for each site?
site A: $0 million; site B: $10 million
site A: $16 million: site B: $10 million
site A: $0 million; site B: -$4.4 million
site A: $16 million; site B: -$4.4 million

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps with 2 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

$Discrete Probability Distributions$

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, probability and related others by exploring similar questions and additional content below.

Similar questions

Parts a-d please
Your friend offers to place a bet with you. He will pay you $2 if your favorite sports team wins the game on Tuesday night. But you will pay him $3 if his team wins. Your team has an 55% chance of winning, whereas his only has a 45% chance. This bet is in your favor. True or False?
Show your solution step by step
In gambling, the chances of winning are often written in terms of odds rather than probabilities. The odds of winning is the ratio of the number of successful outcomes to the number of unsuccessful outcomes. The odds of losing is the ratio of the number of unsuccessful outcomes to the number of successful outcomes. For example, if the number of successful outcomes is 2 and the number of unsuccessful outcomes is 3, the odds of winning are 2:3 (read "2 to 3") or 2 2 (Note: If the odds of winning are the probability of success is 3' 5.) 2 3 The odds of an event occurring are 3:1. Find (a) the probability that the event will occur and (b) the probability that the event will not occur.
June is a student taking a statistics course. Unfortunately, June is not a diligent student. She does not read the textbook before or after class, does not do homework, and regularly misses class. She intends to rely on luck to pass the next quiz. The quiz consists of 10 multiple-choice question. Each question has five possible answers. Only one of the answers is correct, so the probability of choosing the correct answer is 0.20. June plans to guess the answer to each question independently. Let � be the number of correct answers on June’s quiz. What is the standard deviation of correct answers for June? Group of answer choices 8 2 1.26 1.14 None of These
A game-show spinner has these odds of stopping on particular dollar values: 55% for $50, 20% for $100, 15% for $500, and 10% for $1000. What are the odds of a player winning $50 or $100?
Solve the following probabilty problem: Doris and her friend plan to travel to Florida during the winter intersession period. Based upon the past experience they know that the probability that they go by car is 0.4 and the probability that they go by plane is 0.2. What is the probability that they travel to Florida by car or plane only?
The proprietor of Midland Construction Company has to decide between two projects. He estimates that the first project will yield a profit of $160,000 with a probability of 0.7 or a profit of $120,000 with a probability of 0.3; the second project will yield a profit of $220,000 with a probability of 0.6 or a profit of $70,000 with a probability of 0.4.Find the expected profit for each project. first project $ second project $ Which project should the proprietor choose if he wants to maximize his expected profit? first project second project
Solve the following problems completely. Box and round your final answer up to 4 decimal places. A wallet contains 8 P100 bills, 3 P200 bills, 4 P500 bills, and 2 P1000 bills. You randomly choose 9 bills without replacement. What is the probability that you will choose 2 P200 bills, 1 P1000 bill, 4 P100 bills, and 2 P500 bills?
At races, your horse, White Rum, has a probability of 1/20 of coming 1st, 1/10 of coming 2nd and a probability of ¼ in coming 3rd. First place pays $5,000 to the winner, second place $4,000 and third place $1,350. Hence, is it worth entering the race if it costs $1050?
Suppose an oil company is thinking of buying some land for $10,000,000. There is a 60%60% chance of economic growth and a 40%40% chance of recession. The probability of discovering oil is 44%44% when there is economic growth and 32%32% when there is a recession. If there is economic growth and the oil company discovers oil, the value of the land will triple. If they do not discover oil, the value of the land will decrease by 10%.10%. If there is a recession and the company discovers oil, the value of the land will increase by 50%.50%. If they do not discover oil, the land will decrease in value by 75%.75%. What is the expected value of the investment? Give your answer to the nearest dollar. Avoid rounding within calculations. $$ Select the correct interpretation of the expected value. The expected value represents what the actual investment value will be for this land purchase of $10,000,000. The company should make the investment because the expected value…
At Oriole Company, events and transactions during 2020 included the following. The tax rate for all items is 40%.(1) Depreciation for 2018 was found to be understated by $ 151000.(2) A strike by the employees of a supplier resulted in a loss of $ 125100.(3) The inventory at December 31, 2018 was overstated by $ 201000.The effect of these events and transactions on 2020 income from continuing operations net of tax would be