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8.5.51-BE Question Help 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 .3) and lose $3 million if not (probability .7); site B will net $60 million if successful (probability .2) and lose $8 million if not (probability .8). Which site should the company choose according to the expected return from each site? a. What is the expected return for site A? $ million

8.5.51-BE Question Help 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 .3) and lose $3 million if not (probability .7); site B will net $60 million if successful (probability .2) and lose $8 million if not (probability .8). Which site should the company choose according to the expected return from each site? a. What is the expected return for site A? $ million

Holt Mcdougal Larson Pre-algebra: Student Edition 2012
Holt Mcdougal Larson Pre-algebra: Student Edition 2012
1st Edition
ISBN:9780547587776
Author:HOLT MCDOUGAL
Publisher:HOLT MCDOUGAL
Chapter11: Data Analysis And Probability
Section11.8: Probabilities Of Disjoint And Overlapping Events
Problem 2C
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8.5.51-BE Question Help 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 .3) and lose $3 million if not (probability .7); site B will net $60 million if successful (probability .2) and lose $8 million if not (probability .8). Which site should the company choose according to the expected return from each site? a. What is the expected return for site A? $ million
Transcribed Image Text:8.5.51-BE Question Help 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 .3) and lose $3 million if not (probability .7); site B will net $60 million if successful (probability .2) and lose $8 million if not (probability .8). Which site should the company choose according to the expected return from each site? a. What is the expected return for site A? $ million
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