Assume that hitting oil at one drilling location is independent of another, and that, in a particular region, the probability of success at an individual location is .3.
a. What is the probability that a driller will hit oil on or before the third drilling?
b. If Y is the number of drillings until the first success occurs, find the mean and standard deviation of Y.
c. Is it likely that Y will exceed 10? Explain.
d. Suppose the drilling company believes that a venture will be profitable if the number of wells drilled until the second success occurs is less than or equal to 7. Find the probability that the venture will be successful.