Question
Please help: A natural gas company is considering drilling a well in a particular site. It estimates the site will net $120 million if successful
Please help:
A natural gas company is considering drilling a well in a particular site. It estimates the site will net $120 million if successful (probability of success = 0.05) and will lose $5 million if unsuccessful (probability = 0.95). What is the expected value return for a well at this site?
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Discrete Mathematics and Its Applications
Authors: Kenneth H. Rosen
7th edition
0073383090, 978-0073383095
