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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 $30 million if successful (probability 2) and lose $3 million if not (probability. 8); site B will net $60 million if successful (probability -1) and lose $6 million if not (probability.9). Which site should the company choose according to the expected return from each site? a. What is the expected return for site A?$1 million b. What is the expected return for site B? $ million c. Which site should the company choose? O Site A Site B
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