1. National Oil Company conducts exploratory oil drilling operations in the southwestern United States. To fund the operation, investors form partnerships, which provide the financial support necessary to drill a fixed number of oil wells. Each well drilled is classified as a producer well or a dry well. Past experience in this type of exploratory operation shows that 15% of all wells drilled are producer wells. A newly formed partnership has provided the financial support for drilling at 12 exploratory locations.

1. What is the probability that all 12 wells will be producer wells?
2. What is the probability that all 12 wells will be dry wells?
3. What is the probability that exactly one well will be a producer well?
4. To make the partnership venture profitable, at least three of the exploratory wells must be producer wells. What is the probability that the venture will be profitable?

Answer rating: 100% (QA)

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