An oil wildcatter owns the drilling rights at two widely separated locations. After consulting a geologist, he feels that at each location the probability of discovering oil if a well is drilled is 10%. A well costs $100,000 to drill, and this is a total loss if no oil is found. On the other hand, if oil is discovered, the oil can be sold for $1,700,000. The wildcatter has $100,000 available for drilling expenses. Find the mean and standard deviation of the wildcatter's net profit...

(a) if the $100,000 is used to drill a single well,

(b) if the wildcatter finds a partner to share costs and profits with equally (each will receive 1 2 of the final profit, positive or negative) and their pooled funds are used to drill wells in both locations.

(Advice: Work in units of $100,000 to simplify your calculations.)