Referring to the oil-wildcatting decision diagrammed in Figure 7.16, suppose that the decision maker has not yet assessed P(Dome) for Site1. Find the value of P (Dome) for which the two sites have the same EMV. If the decision maker believes that P (Dome) is between 0.55 and0.65, what action should be taken?
Figure 7.16

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Dry (0.60) -100,000 w 10.25-150.000 500,000 )--100.000 Low (0.125)150.000 52.50K Donie (0.6) High (0.15) No\53.75K/ Dry Dome Site 1 (EMV= 10K) 10.8501 150,000 10,025)-500,000 0.4) High 200K OK Dry (0.2) Site 2 (EMV =0) Low (0.8)