An oil-drilling company knows that it costs $95,000 to sink a test well. If oil is hit, the income for the drilling company will be $875,000. If only natural gas is hit, the income will be $340,648. If nothing is hit, there will be no income. If the probability of hitting oil is
and if the probability of hitting gas is
style="vertical-align: middle;" data-wiris-created="true" varid="variable_id_field" variablename="impvar_eb48c6e9d46642ba81a356a23" />, what is the expectation for the drilling company? Should the company sink the test well? Please round your answer to the nearest dollar.
?
The expectation is __________, the company __________ (should, shouldn't) dig.
What will be an ideal response?
-$59,499; shouldn't
Mathematics
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