Logo
Home Study Material Contact Search
AI Chat FREE
  1. mathematics
  2. statistics
  3. a company is considering drilling oil wells. the p

A company is considering drilling oil wells. The probability of success for each well is 0.20....

90.2K

Verified Solution

Question

Statistics

A company is considering drilling oil wells. The probability ofsuccess for each well is 0.20. The cost of each well is $5(in1000). Each well that is successful will be worth $60 (in1000).

1) If the company drills 4 wells, the probability of at leastone successful well is

2) If the company drills 40 wells, the approximate probabilityof at most one successful well is

3) The expected profit and the variance of profit in 4 drillingsare

Answer & Explanation Solved by verified expert
4.3 Ratings (736 Votes)
Letp probability of success for each well 02n number of wells dug by the companyX number of successful wells among nThus X follows Binomial Distribution with n and p 021 Company    See Answer
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Physics
1.2K views

A copper wire and a lead wire are joined together end to end The compound...

Physics
1.2K views

A solid cylinder of mass 2 kg and radius 4 cm rotating about its axis...

Calculus
1.2K views

Analyze and sketch a graph of the function Identify any relative extrema points of inflection...

Algebra
1.2K views

Problem 7 8 points Consider the ordered bases B a Find the transition matrix from...

Algebra
1.2K views

Find the exact value of the logarithm without using a calculator log 381

Accounting
1.2K views

Dek Inc. is a manufacturing firm. When direct materials are issued to production, which of...

Accounting
1.2K views

You currently have 10,000 in a savings account that earn 6% per year, how much...

Accounting
1.2K views

Which business entity is the best for an established massage therapy practitioner who is primarily...

Accounting
1.2K views

How do I calculate? Bringham Company issues bonds with a par value of...

Accounting
1.2K views

What is the definition of inventory under IFRS? The text gives several examples of assets...

Finance
1.2K views

Consider the following information: Rate of Return if State Occurs State of Economy Boom Good...

Finance
1.2K views

Your boss is considering a 5-year investment project. If the project is accepted, it...