: Iraqi Drilling Company is considering drilling five oil wells. The probability of success for each well is 20%. The cost of each well is $200,000. Each well that is successful will be worth $600,000. By using the Poisson Distribution: a) What is the probability that one or more wells will be successful? b) What is the expected number of successes? c) What is the expected gain? d) What will be the gain if only one well is successful? e) Considering all possible results, what is the probability of a loss rather than a gain? f) What is the standard deviation of the number of successes?
: Iraqi Drilling Company is considering drilling five oil wells. The probability of success for each well is 20%. The cost of each well is $200,000. Each well that is successful will be worth $600,000. By using the Poisson Distribution: a) What is the probability that one or more wells will be successful? b) What is the expected number of successes? c) What is the expected gain? d) What will be the gain if only one well is successful? e) Considering all possible results, what is the probability of a loss rather than a gain? f) What is the standard deviation of the number of successes?
Introduction to Chemical Engineering Thermodynamics
8th Edition
ISBN:9781259696527
Author:J.M. Smith Termodinamica en ingenieria quimica, Hendrick C Van Ness, Michael Abbott, Mark Swihart
Publisher:J.M. Smith Termodinamica en ingenieria quimica, Hendrick C Van Ness, Michael Abbott, Mark Swihart
Chapter1: Introduction
Section: Chapter Questions
Problem 1.1P
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Transcribed Image Text:: Iraqi Drilling Company is considering drilling five oil wells. The probability
of success for each well is 20%. The cost of each well is $200,000. Each well that
is successful will be worth $600,000. By using the Poisson Distribution:
a) What is the probability that one or more wells will be successful?
b) What is the expected number of successes?
c) What is the expected gain?
d) What will be the gain if only one well is successful?
e) Considering all possible results, what is the probability of a loss rather than a
gain?
f) What is the standard deviation of the number of successes?
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