Homework Help Question & Answers

1. An oil company conducts a geological study that indicates that an exploratory oil well should...

1. An oil company conducts a geological study that indicates that an exploratory oil well should have a 25% chance of striking oil.
Part (a): What is the probability that the first strike comes on the third well drilled?
Part (b): What is the probability that the third strike comes on the seventh well drilled?
Part (c): What is the mean of the number of wells that must be drilled if the oil company wants to set up three producing wells?
Part (d): What is the variance of the number of wells that must be drilled if the oil company wants to set up three producing wells?

2. An oil company conducts a geological study that indicates that an exploratory oil well should have a 30% chance of striking oil.
Part (a): What is the probability that the third strike comes on the seventh well drilled?
Part (b): What is the mean of the number of wells that must be drilled if the oil company wants to set up three producing wells?
Part (c): What is the variance of the number of wells that must be drilled if the oil company wants to set up three producing wells?

0 0
Next > < Previous
ReportAnswer #1

1(a)

Let X is a random variable shows the number of well drilled till first strike. Here X has geometric distribution with parameter p = 0.25. The probability that the first strike comes on the third well drilled is

P(X = 3) = (1-0.25)3-1 . 0.25 = 0.140625

Answer: 0.1406

(b)

Let X is a random variable shows the number of well drilled till third strike. Here X has negative binomial distribution with parameters r=3 and  p = 0.25. The probability that the third strike comes on the seventh well drilled is

7-1 PlX-7)-(::) . (1-0.25)7-3 . 0.253 0.0746

Answer: 0.0746

(c)

Using distribution of part b:

μ=-=-=12 p 0.25

Answer: 12

(d)

Using distribution of part b:

r(1-p) - p) 3 0.75 2 r(1 3 . 0.75 0.25

Answer: 9

Know the answer?
Add Answer of:
1. An oil company conducts a geological study that indicates that an exploratory oil well should...
Your Answer: Your Name: What's your source?
Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
Share Your Knowledge

Post an Article
Post an Answer
Post a Question with Answer

Self-promotion: Authors have the chance of a link back to their own personal blogs or social media profile pages.