An oil company is considering two sites on which to drill. The sites are described in the following table. Complete parts (a) through (b) below. Site A: Profit if oil is found: $120 million Loss if no oil is found: $20 million Probability of finding oil: 0.2 Site B: Profit if oil is found: $180 million Loss if no oil is found: $30 million Probability of finding oil: 0.1 a. Which site has the larger expected profit? Site A has the larger expected profit. Site B has the larger expected profit. The expected profits for both sites are the same. O O O

Algebra & Trigonometry with Analytic Geometry
13th Edition
ISBN:9781133382119
Author:Swokowski
Publisher:Swokowski
Chapter9: Systems Of Equations And Inequalities
Section9.4: Linear Programming
Problem 12E
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An oil company is considering two sites on which to drill. The sites are described in the following table. Complete parts (a) through (b) below.
Site A: Profit if oil is found: $120 million
Loss if no oil is found: $20 million
Probability of finding oil: 0.2
Site B: Profit if oil is found: $180 million
Loss if no oil is found: $30 million
Probability of finding oil: 0.1
a. Which site has the larger expected profit?
ti
Site A has the larger expected profit.
Site B has the larger expected profit.
/1
The expected profits for both sites are the same.
/1
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Clear all
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Transcribed Image Text:Value 170, 3 of 11 Part 1 of 2 points Help O Points: 0 of 1 Save An oil company is considering two sites on which to drill. The sites are described in the following table. Complete parts (a) through (b) below. Site A: Profit if oil is found: $120 million Loss if no oil is found: $20 million Probability of finding oil: 0.2 Site B: Profit if oil is found: $180 million Loss if no oil is found: $30 million Probability of finding oil: 0.1 a. Which site has the larger expected profit? ti Site A has the larger expected profit. Site B has the larger expected profit. /1 The expected profits for both sites are the same. /1 Final check Clear all Get more help - View an example Help me solve this
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