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 $40 million if successful (probability .4) and lose $2 million if not (probability .6); site B will net $80 million if successful (probability .3) and lose $7 million if not (probability .7).Which site should the company choose according to the expected return from each site?

a. What is the expected return for site A?

$_____

million

b. What is the expected return for site B?

$____

million

c. Which site should the company choose?

Site B or Site A?