Question: Hi! Could I get help solving the total expected cost to the firm An oil exploration company is formed with enough capital to finance ten
Hi! Could I get help solving the total expected cost to the firm

An oil exploration company is formed with enough capital to finance ten explorations. The probability that a particular exploration is successful is . 1. Assume that the scans are independent. Find the mean and variance of the number of successful explorations. Binomial distribution N= 10 P = 0.1 Mean= np 10 * 0.1 = 1 Variance= np(1-p) = 10*0. 1*(1-0.1) = 0.9 Using the situation in exercise (i) suppose that the company has a fixed cost of $20,000 to prepare equipment before doing its first exploration. If each successful scan costs $30,000 and each unsuccessful scan costs $15,000, find the total expected cost to the firm for its ten scans
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