User Account

All Pages

Probability of a favorabale seismic survey

Assignment Help Basic Statistics
Reference no: EM131099804

The Mobile Oil company has recently required oil rights to a new potential scource of natural oil in Alaksa. The current market value of these rights is $90,000. If there is natural oil at the site, it is estimated to be worth $800,000; however, the company would have to pay $100,000 in drilling costs to extract the oil. The company believes there is a .25 probability that the proposed drilling site is actually would hit the natual oil reserve. Alternatively, the company can pay $30,000 to first carry out a seismic survey at the proposed drilling site. The probability of a favorable seismic survey when oil is present at the drilling site is 0.6. The probability of an unfavorable seismic survey when no oil is present is 0.80.

a. What is the probability of a favorabale seismic survey?

b. What is the probability of an unfavorable survey?

c. Construct a decision tree for this problem

d. What is the optimal decision strategy using the EMV criterion?

e. To which financial estimate in the decision tree is the EMV most sensitive?

Reference no: EM131099804

Questions Cloud

Appropriate set of numbers : If the standard deviation of a set of scores =0, what can you say about the scores in the distribution? Verify your answer using an example . Create an appropriate set of numbers and actually calculate the SD(standard deviation ), showing that it..
Causing the democratic party to expect electoral gains : What does this mean? And which party did it benefit? What is happening now that is causing the Democratic Party to expect electoral gains in the next few years? Hint: demographics!
Design the database using the er approach : Design the database using the ER approach and then create the tables accordingly. Populate the tables
Discuss the service strategy processes : CIS3008 IT Service Management 2016 Major Assignment. Many organisations manage their IT services at an operational level without a clear strategic focus. HSC intends to continue their ITIL adoption with processes from the Service Strategy phase. Di..
Probability of a favorabale seismic survey : a. What is the probability of a favorabale seismic survey? b. What is the probability of an unfavorable survey? c. Construct a decision tree for this problem d. What is the optimal decision strategy using the EMV criterion? e. To which financial esti..
Relates to a current event topic in the media : Please write about any of the topics covered in Chapter 15, or Chapter 16 as it relates to a current event topic in the media.  (Current events should be within the last month if possible).
Probability of a favorabale seismic survey : a. What is the probability of a favorabale seismic survey? b. What is the probability of an unfavorable survey? c. Construct a decision tree for this problem d. What is the optimal decision strategy using the EMV criterion? e. To which financial esti..
Proportion of college football players : Is this survey valid or not valid for testing the hypothesis that the proportion of college football players at our university with at least one concussion is less than the national average?
What is the approximate test statistic : What is the approximate test statistic for p^ = 0.54?

Reviews

Write a Review

Basic Statistics Questions & Answers

  Statistics-probability assignment

MATH1550H: Assignment:  Question:  A word is selected at random from the following poem of Persian poet and mathematician Omar Khayyam (1048-1131), translated by English poet Edward Fitzgerald (1808-1883). Find the expected value of the length of th..

  What is the least number

MATH1550H: Assignment:  Question:     what is the least number of applicants that should be interviewed so as to have at least 50% chance of finding one such secretary?

  Determine the value of k

MATH1550H: Assignment:  Question:     Experience shows that X, the number of customers entering a post office during any period of time t, is a random variable the probability mass function of which is of the form

  What is the probability

MATH1550H: Assignment:Questions: (Genetics) What is the probability that at most two of the offspring are aa?

  Binomial distributions

MATH1550H: Assignment:  Questions:  Let’s assume the department of Mathematics of Trent University has 11 faculty members. For i = 0; 1; 2; 3; find pi, the probability that i of them were born on Canada Day using the binomial distributions.

  Caselet on mcdonald’s vs. burger king - waiting time

Caselet on McDonald’s vs. Burger King - Waiting time

  Generate descriptive statistics

Generate descriptive statistics. Create a stem-and-leaf plot of the data and box plot of the data.

  Sampling variability and standard error

Problems on Sampling Variability and Standard Error and Confidence Intervals

  Estimate the population mean

Estimate the population mean

  Conduct a marketing experiment

Conduct a marketing experiment in which students are to taste one of two different brands of soft drink

  Find out the probability

Find out the probability

  Linear programming models

LINEAR PROGRAMMING MODELS

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd