Royalty income received by an investor in an oil well will vary according to the price of oil. Data collected from stripper wells in an established oilfield were used to develop a probability-royalty relationship. Calculate (a) the expected value of royalties per year, and (b) the probability that the royalties will be at least $12,600 per year. Royalties R, $/year 6200 8500 9600 10,300 12,600 15,500Probability, P(R) 0.10 0.21 0.32 0.24 0.09 0.04
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.
Royalty income received by an investor in an oil well will vary according to the price of oil. Data collected from stripper wells in an established oilfield were used to develop a
Royalties R, $/year 6200 8500 9600 10,300 12,600 15,500
Probability, P(R) 0.10 0.21 0.32 0.24 0.09 0.04
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