Suppose an oil company is thinking of buying some land for $950,000. There is a 60% chance of economic growth and a 40% chance of recession. The probability of discovering oil is 48% when there is economic growth and 34% 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 12%. If there is a recession and the company discovers oil, the value of the land will increase by 50%. If they do not discover oil, the land will decrease in value by 70%. What is the expected value of the investment? Give your answer to the nearest dollar. Avoid rounding within calculations.

Suppose an oil company is thinking of buying some land for $950,000. There is a 60% chance of economic growth and a 40% chance of recession. The probability of discovering oil is 48% when there is economic growth and 34% 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 12%. If there is a recession and the company discovers oil, the value of the land will increase by 50%. If they do not discover oil, the land will decrease in value by 70%. What is the expected value of the investment? Give your answer to the nearest dollar. Avoid rounding within calculations.

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Description: Suppose an oil company is thinking of buying some land for $950,000. There is a 60% chance of economic growth and a40% chance of recession. The probability of discovering oil is 48% when there is economic growth and 34% when there is arecession. If

MATLAB: An Introduction with Applications

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Author:Amos Gilat

Publisher:Amos Gilat

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Concept explainers

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Speed, Time, and Distance

Imagine you and 3 of your friends are planning to go to the playground at 6 in the evening. Your house is one mile away from the playground and one of your friends named Jim must start at 5 pm to reach the playground by walk. The other two friends are 3 miles away.

Profit and Loss

The amount earned or lost on the sale of one or more items is referred to as the profit or loss on that item.

Units and Measurements

Measurements and comparisons are the foundation of science and engineering. We, therefore, need rules that tell us how things are measured and compared. For these measurements and comparisons, we perform certain experiments, and we will need the experiments to set up the devices.

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Suppose an oil company is thinking of buying some land for $950,000. There is a 60% chance of economic growth and a
40% chance of recession. The probability of discovering oil is 48% when there is economic growth and 34% 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 12%. If there is a recession and the company discovers oil, the value of
the land will increase by 50%. If they do not discover oil, the land will decrease in value by 70%.
What is the expected value of the investment? Give your answer to the nearest dollar. Avoid rounding within calculations.

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