As a petroleum engineer in a company you are unsure on how much money could be made per

each barrel of oil produced, as the oil price, production and transportation costs vary

significantly. To account for this the aforementioned parameters have been defined in terms

of probabilities;

30% probability company could make $ 2 per bbl

5% probability company could make $ 3 per bbl

20% probability company could make $ 5 per bbl

a) What is the expectation value of 1 million barrels?