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Decision analysis After careful testing and analySis' an Oil company is considering drilling in two different sites It is estimated that Site A Will net
Decision analysis After careful testing and analySis' an Oil company is considering drilling in two different sites It is estimated that Site A Will net 330 million if successful (probability .4) and lose $2 million not (probability 6)' site B Will net $60 million if successful (probability 3) and lose $5 million if not (probability T) Which Site should the company choose according to the expected return from each Site? a. What is the expected return for site A? 5 million b. What is the expected return for site B'? 3 million c. Which Site should the company choose? Site A Site B
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