SOLUTION: An oil drilling company ventures into various locations, and their success or failure is
independent from one location to another. Suppose the probability of a success at any
spe
Algebra.Com
Question 98164: An oil drilling company ventures into various locations, and their success or failure is
independent from one location to another. Suppose the probability of a success at any
specific location is 0.25.
i) What is the probability that a driller drills 10 locations and finds 1 success?
ii) The driller feels that he will go bankrupt if he drills 10 times before the first
success occurs. What are the driller’s prospects for bankruptcy?
Answer by stanbon(75887) (Show Source): You can put this solution on YOUR website!
Suppose the probability of a success at any
specific location is 0.25.
i) What is the probability that a driller drills 10 locations and finds 1 success?
P(one success in 10) = (10C1)(0.25)^1(0.75)^9 = 0.1877...
--------------------
ii) The driller feels that he will go bankrupt if he drills 10 times before the first success occurs. What are the driller’s prospects for bankruptcy?
----------------
P(no success in 10 trials) = 0.75^10 = 0.0563...
Chances are 563 in 10000 that he will go bankrupt.
===============
Cheers,
Stan H.
RELATED QUESTIONS
Assume that hitting oil at one drilling location is independent of another,
and that, in (answered by Boreal)
1. Jed Clampett, the president of Ozark Oil, plans to conduct a preliminary survey to... (answered by solver91311)
(1) Suppose that of all individuals buying a certain digital camera, 60% include an... (answered by ikleyn)
An oil drilling company knows that it costs $25,000 to sink a test well. If oil is hit,... (answered by stanbon)
An oil-drilling company knows that it costs $25,000 to sink a test well. If oil is hit,... (answered by ewatrrr)
An oil-drilling company knows that it costs $25,000 to sink a test well. If oil is hit,... (answered by fcabanski)
An oil-drilling company knows that it costs $25,000 to sink a test well. If oil is hit,... (answered by stanbon)
An oil-drilling company knows that it costs $25,000 to sink a test well. If oil is hit,... (answered by ewatrrr)
An oil-drilling company knows that it costs $25,000 to sink a test well. If oil is hit,... (answered by ewatrrr)