An oil company in Abu Dhabi expects that a new oil field will produce between 2,000...

 

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An oil company in Abu Dhabi expects that a new oil field will produce between 2,000 and 12,000 barrels of oil per hour. The oil company also expects that most likely production to be 7000 barrels per hour. The company believes the oil field will be uneconomic if the probability of extracting less than 5,000 barrels per hour is less than 10%. a) Model the hourly production of oil by a triangular distribution. b) Find the probability that less than 5,000 barrels of oil will be produced in one hour. Is this economic production rate? c) What is the probability that this oil field will produce more than 10,000 barrels per hour? d) You manager is interested in learning the 75th percentile. How much is the production rate this level? An oil company in Abu Dhabi expects that a new oil field will produce between 2,000 and 12,000 barrels of oil per hour. The oil company also expects that most likely production to be 7000 barrels per hour. The company believes the oil field will be uneconomic if the probability of extracting less than 5,000 barrels per hour is less than 10%. a) Model the hourly production of oil by a triangular distribution. b) Find the probability that less than 5,000 barrels of oil will be produced in one hour. Is this economic production rate? c) What is the probability that this oil field will produce more than 10,000 barrels per hour? d) You manager is interested in learning the 75th percentile. How much is the production rate this level?

Answer rating: 100% (QA)

aThe minimum value the company would accept is 5000 barrels per hour The most likely va... View the full answer