An oil drilling company is considering 2 sites for its well. The probabilities for getting a dry, a low-producing, or a high-producing well atsite A are 0.6, 0.25, and 0.15, respectively. The costs for the 3 eventualities are $150,000, $225,000, and $750,000. For site B, theprobability of finding a dry well, resulting in a $280,000 loss, is 0.2. The company estimates that the probability of a low-producing wellis 0.8, and in that case it would make $70,000.(a) Make a tree diagram for this situation and find the expected value for site A.$(b) Make a tree diagram for this situation and find the expected value for site B.$(c) On the basis of your answers to (a) and (b), which site should the company select?site Asite B

An oil drilling company is considering 2 sites for its well. Site A and Site B.

Answered: An oil drilling company is considering…

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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Delaney is about to take a final exam that consists of 20 questions. To motivate her to study, her parents promised her $500 if she gets at least 17 questions right. The questions are multiple choice and the probability of her getting a question right is 0.75 on each question of the final exam. What is the probability that she gets exactly 17 questions right? What is the probability that she gets at least 17 questions right?
Dan's Diner employs three dishwashers. Al washes 20% of the dishes and breaks only 1% of those he handles. Betty and Chuck each wash 40% of the dishes, and Betty breaks only 1% of hers, but Chuck breaks 3% of the dishes he washes. You go to Dan's for supper one night and hear a dish break at the sink. What's the probability that Chuck is on the job? The probability that Chuck is on the job is (Round to three decimal places as needed.) An Pas
The proprietor of Midland Construction Company has to decide between two projects. He estimates that the first project will yield a profit of $180,000 with a probability of 0.7 or a profit of $130,000 with a probability of 0.3; the second project will yield a profit of $220,000 with a probability of 0.7 or a profit of $80,000 with a probability of 0.3.Find the expected profit for each project. first project $ second project $
You purchase a brand new car for $15,000 and insure it. The policy pays 78% of the car's value if there is an issue with the engine or 30% of the car's value if there is an issue with the speaker system. The probability of an issue with the engine is 0.009, and the probability there is an issue with the speaker system is 0.02. The premium for the policy is p. Let X be the insurance company's net gain from this policy. (a) Create a probability distribution for X, using p to represent the premium on the policy. Enter the possible values of X in ascending order from left to right. P(X) (b) Compute the minimum amount the insurance company will charge for this policy. Round your answer to the nearest cent
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
Becky and Carla take an advanced yoga class. Becky can hold 29% of her poses for over a minute, while Carla can hold 35% of her poses for over a minute. Suppose each yoga student is asked to hold 50 poses. Let B the proportion of poses Becky can hold for over a minute and C = the proportion of poses Carla can hold for over a minute. What is the probability that Becky's proportion of poses held for over a minute is greater than Carla's? Find the z-table here. O 0.159 O 0,259 0 0.448 O 0,741 Save and Exit Next Submit Math and rem 96 & 7 8 9. 10
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…
Brian, a landscape architect, submitted a bid on each of three home landscaping projects. He estimates that the probabilities of winning the bid on Project A, Project B, and Project C are 0.7, 0.5, and 0.2, respectively. Assume that the probability of winning a bid on one of the three projects is independent of winning or losing the bids on the other two projects. Find the probability that Brian will experience the following. (a) Win all three of the bids (b) Win exactly two of the bids (c) Win exactly one bid
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