Decision analysis. After careful testing and analysis, an oil company is considering drilling in two different sites. It is estimated that site A will net $30 million if successful (probability .2 ) and lose $3 million if not (probability .8 ); site R will net $70 million if successful (probability .1 ) and lose $4 million if not (probability .9 ). Which site should the company choose according to the expected return for each site?
Decision analysis. After careful testing and analysis, an oil company is considering drilling in two different sites. It is estimated that site A will net $30 million if successful (probability .2 ) and lose $3 million if not (probability .8 ); site R will net $70 million if successful (probability .1 ) and lose $4 million if not (probability .9 ). Which site should the company choose according to the expected return for each site?
Decision analysis. After careful testing and analysis, an oil company is considering drilling in two different sites. It is estimated that site A will net
$30
million if successful (probability
.2
) and lose
$3
million if not (probability
.8
); site R will net
$70
million if successful (probability
.1
) and lose
$4
million if not (probability
.9
). Which site should the company choose according to the expected return for each site?
Mathematics with Applications In the Management, Natural and Social Sciences (11th Edition)
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