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Chrome File Edit View History Bookmarks People Window Help Sun 12:24 PM Lily Rossi a Chrome Fla Ed x c Secure httpsal Mary Lully Rossi Student section: 742) MTH112, Spring Finite Mathematics: Applications of College Algebra g Messages Courses Help Logout course contents... Lecture s Problems Texas Tea OTimer Notes Evaluate Feedback Print Info Texas Tea erking olin the back yard, and a 45% chance in Jed They also yard stee wou million. In either yard, in the yard. the back Try if they drill and find nothing, they lose ss should they backyard or his front yard (not both), Aner thorough testing and analysis, they estimate there is a 35% chance back: best yard to drill You are correct. no, is 147. How much does Black Gold expect to make? (answer in millions) I Tries 5/8 Previous Tries (Based on: Johnson/Mowry, Section 1.5: Expected value, 31) Post Discussion MacBook Pro

Explanation / Answer

Solution:-

The question is a little bit unclear, but here is what I think they want

Front yard : 0.45($50) + (1-0.45)(-5) = $22.5 - 2.75 = 19.75 million

Back yard : 0.35($75) + (1-0.35)(-5) = $26.25 - 3.25 = 23 million

Since the problem states that they will consider drilling either in Jed Clampett's back yard or his front yard (but not both)

Choose the Back Yard = $23 million

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