An oil-drilling company knows that it costs $65,000 to sink a test well. If oil is hit, the income for the drilling company will be $550,000. If only natural gas is hit, the income will be $428,373. If nothing is hit, there will be no income. If the probability of hitting oil is 1/65 and if the probability of hitting gas is 1/35, what is the expectation for the drilling company? Should the company sink the test well?

The expectation for the drilling company is $20700.76.

No, the company should not sink the test well as the cost for sinking is $65000 and our expectation is just $20700.76.

Step-by-step explanation:

Since we have given that

Probability of hitting oil =

Probability of hitting oil =

Income for the drilling company = $550,000

Income for the natural gas = $428,373

According to question, we get that

Expected for the drilling company would be :

No, the company should not sink the test well as the cost for sinking is $65000 and our expectation is just $20700.76.

total amount of money that he should pay if he has not used his duty free exemption is $98

step-by-step explanation:

given a united states citizen returning to the states declares the following items at the customs office: 3 shirts at $8.50 each 2 dresses at $27.50 each 1 pair of gold cuff links at $17.50 per pair. we have to find how much he pay

cost of 3 shirts if one cost at $8.50 is

cost of 2 dresses if one cost at $27.50 is  

cost of 1 pair of gold cuff at $17.50

so, total amount of money that he should pay if he has not used his duty free exemption is   $25.5+$55+$17.50=$98

b

step-by-step explanation: