An oil company executive and an executive of a mining company met during a conference. "They say 30% of the world's undiscovered oil is in the Arctic," started the oil man. "We've drilled 56 exploratory wells and all but 17 of them were dry. Only 3 of those 17 are economical with the oil prices being projected for the next 10 years. The good news is that 90% of these projects get environmental approvals." The mining executive replied, "It's just as bad in mining. We know where there's uranium, but with the current unpopularity of nuclear power, we estimate the chance of it being profitable is less than 15%." Complete parts (a) through (e) below. a) What method of probability assessment is being used by the mining executive? Choose the correct answer below. OA. The probability is a subjective probability since it is based on an estimate of outcomes. OB. The probability is an empirical probability since it is based on observing past outcomes. OC. The probability is a theoretical probability since it comes from a mathematical model of the number of possible outcomes. O D. The probability is an empirical probability since it comes from a mathematical model of the number of possible outcomes. O E. The probability is a subjective probability since it is based on observing past outcomes. OF. The probability is a theoretical probability since it is based on an estimate of outcomes. b) What method of probability assessment is being used by the oil executive? Choose the correct answer below. O A. The probability is an empirical probability since it comes from a mathematical model of the number of possible outcomes. OB. The probability is a subjective probability since it is based on an estimate of outcomes. OC. The probability is a theoretical probability since it comes from a mathematical model of the number of possible outcomes. D. The probability is a theoretical probability since it is based on an estimate of outcomes. O E. The probability is a subjective probability since it is based on observing past outcomes. OF. The probability is an empirical probability since it is based on observing past outcomes.

An oil company executive and an executive of a mining company met during a conference. "They say 30% of the world's undiscovered oil is in the Arctic," started the oil man. "We've drilled 56 exploratory wells and all but 17 of them were dry. Only 3 of those 17 are economical with the oil prices being projected for the next 10 years. The good news is that 90% of these projects get environmental approvals." The mining executive replied, "It's just as bad in mining. We know where there's uranium, but with the current unpopularity of nuclear power, we estimate the chance of it being profitable is less than 15%." Complete parts (a) through (e) below. a) What method of probability assessment is being used by the mining executive? Choose the correct answer below. OA. The probability is a subjective probability since it is based on an estimate of outcomes. OB. The probability is an empirical probability since it is based on observing past outcomes. OC. The probability is a theoretical probability since it comes from a mathematical model of the number of possible outcomes. O D. The probability is an empirical probability since it comes from a mathematical model of the number of possible outcomes. O E. The probability is a subjective probability since it is based on observing past outcomes. OF. The probability is a theoretical probability since it is based on an estimate of outcomes. b) What method of probability assessment is being used by the oil executive? Choose the correct answer below. O A. The probability is an empirical probability since it comes from a mathematical model of the number of possible outcomes. OB. The probability is a subjective probability since it is based on an estimate of outcomes. OC. The probability is a theoretical probability since it comes from a mathematical model of the number of possible outcomes. D. The probability is a theoretical probability since it is based on an estimate of outcomes. O E. The probability is a subjective probability since it is based on observing past outcomes. OF. The probability is an empirical probability since it is based on observing past outcomes.

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...

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