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An ol company is considering two sites on which to dr. The stes are described in the following table. Complete parts (a) through (b) below Site A Profit ol is found $120 million Loss if no ol is found: $20 milion Probability of finding ol: 02 Site B Profit if ol is found $180 million Loss no ol is found: $30 milion Probability of finding ot: 0.1 a. Which site has the larger expected profit? Site Ahas the larger expected profit Site B has the larger expected profit The expected profits for both sites are the same b.f the expected profit for both sites is not the same, by how mudch is the expected profit larger? milion (Round to the nearest tenth as needed.)

An ol company is considering two sites on which to dr. The stes are described in the following table. Complete parts (a) through (b) below Site A Profit ol is found $120 million Loss if no ol is found: $20 milion Probability of finding ol: 02 Site B Profit if ol is found $180 million Loss no ol is found: $30 milion Probability of finding ot: 0.1 a. Which site has the larger expected profit? Site Ahas the larger expected profit Site B has the larger expected profit The expected profits for both sites are the same b.f the expected profit for both sites is not the same, by how mudch is the expected profit larger? milion (Round to the nearest tenth as needed.)

Practical Management Science
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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An oil company is considering two sites on which to drill. The sites are described in the foliowing table. Complete parts (a) through (b) below. Site A Profit if ol is found: $120 million Loss if no oil is found: $20 million Probablity of finding oil: 0.2 Site B: Profit if ol is found: $180 million Loss if no oil is found: $30 milion Probability of finding oil: 0.1 a. Which site has the larger expected profit? Site A has the larger expected profit. Site B has the larger expected profit. The expected profits for both sites are the same. b. If the expected profit for both sites is not the same, by how much is the expected profit larger? milion (Round to the nearest tenth as needed.)
Transcribed Image Text:An oil company is considering two sites on which to drill. The sites are described in the foliowing table. Complete parts (a) through (b) below. Site A Profit if ol is found: $120 million Loss if no oil is found: $20 million Probablity of finding oil: 0.2 Site B: Profit if ol is found: $180 million Loss if no oil is found: $30 milion Probability of finding oil: 0.1 a. Which site has the larger expected profit? Site A has the larger expected profit. Site B has the larger expected profit. The expected profits for both sites are the same. b. If the expected profit for both sites is not the same, by how much is the expected profit larger? milion (Round to the nearest tenth as needed.)
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