document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=98164>Question 98164</A>: <I><SPAN STYLE=\"word-break: break-all;\"> An oil drilling company ventures into various locations, and their success or failure is<BR>\n" );
document.write( "independent from one location to another. Suppose the probability of a success at any<BR>\n" );
document.write( "specific location is 0.25.<BR>\n" );
document.write( "i) What is the probability that a driller drills 10 locations and finds 1 success?<BR>\n" );
document.write( "ii) The driller feels that he will go bankrupt if he drills 10 times before the first<BR>\n" );
document.write( "success occurs. What are the driller’s prospects for bankruptcy? </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #72561 by </B><A HREF=/tutors/aboutme.mpl?userid=stanbon><B>stanbon(75887)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=stanbon><IMG SRC=http://www.algebra.com/images/aboutme-small.gif BORDER=0 alt=\"About Me\" VALIGN=MIDDLE></A>&nbsp;<IMG SRC=http://www.algebra.com/images/nopicture.jpg><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=72561\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> Suppose the probability of a success at any<BR>\n" );
document.write( "specific location is 0.25.<BR>\n" );
document.write( "i) What is the probability that a driller drills 10 locations and finds 1 success?<BR>\n" );
document.write( "P(one success in 10) = (10C1)(0.25)^1(0.75)^9 = 0.1877...<BR>\n" );
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document.write( "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?<BR>\n" );
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document.write( "P(no success in 10 trials) = 0.75^10 = 0.0563...<BR>\n" );
document.write( "Chances are 563 in 10000 that he will go bankrupt.<BR>\n" );
document.write( "===============<BR>\n" );
document.write( "Cheers,<BR>\n" );
document.write( "Stan H.<BR>\n" );
document.write( " </SPAN>\n" );
document.write( "</TD></TR></TABLE>\n" );