Answer:
The ability to examine the variability of a solution due to changes in the formulation of a problem is an important part of the
1 answer:
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The most appropriate choice for revenue and profit will be given by-
Profit expected from a 100-well drilling program = $
What is revenue and profit?
Total income generated by sale of goods and service is called revenue.
If is the cost of producing one unit of a commodity and
is the number of units of the commodity, then the product of
and
gives the revenue.
If the revenue obtained by selling a commodity is more than the cost, difference between revenue and cost gives the profit.
Here,
Number of economic wells = 11
An economic well produces an average income of $23
Revenue obtained = $
Number of dry wells =
=
Average cost of a dry hole is $1.2 million
Cost of 89 dry holes = $
= $
Profit = Revenue - cost
= $
= $
Profit expected from a 100-well drilling program = $
To learn more about revenue and profit, refer to the link:
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Complete Question
The diagram has been attached
Assume a profitable economic well produces an average income of $23 million, while the average cost of a dry hole is $1.2 million. How much profit can be expected from a 100-well drilling program?
Answer:
(a) Between 27 and 31 pounds per month = 0.62465
(b) More than 30.2 pounds per month = 0.1357
Step-by-step explanation:
We are given that each month, an American household generates an average of 28 pounds of newspaper for garbage or recycling. Assume the standard deviation is 2 pounds and the variable is approximately normally distributed.
<em>Let X = generation of newspaper for garbage or recycling</em>
The z-score probability distribution for normal distribution is given by;
Z = ~ N(0,1)
where, = population average = 28 pounds
= population standard deviation = 2 pounds
The Z-score measures how many standard deviations the measure is away from the mean. After finding the Z-score, we look at the z-score table and find the p-value (area) associated with this z-score. This p-value is the probability that the value of the measure is smaller than X, that is, the percentile of X.
(a) Probability of household generating between 27 and 31 pounds per month is given by = P(27 pounds < X < 31 pounds) = P(X < 31 pounds) - P(X 27 pounds)
P(X < 31 pounds) = P( <
) = P(Z < 1.50) = 0.93319
P(X 27 pounds) = P(
) = P(Z
-0.50) = 1 - P(Z < 0.50)
= 1 - 0.69146 = 0.30854
<em>{Now, in the z table the P(Z </em><em> x) or P(Z < x) is given. So, the above probability is calculated by looking at the value of x = 1.50 and x = 0.50 in the z table which has an area of 0.93319 and 0.30854 respectively.}</em>
Therefore, P(27 pounds < X < 31 pounds) = 0.93319 - 0.30854 = 0.62465
(b) Probability of household generating more than 30.2 pounds per month is given by = P(X > 30.2 pounds)
P(X > 30.2 pounds) = P( >
) = P(Z > 1.10) = 1 - P(Z
<em> </em>1.10)
= 1 - 0.8643 = 0.1357
<em>Now, in the z table the P(Z </em><em> x) or P(Z < x) is given. So, the above probability is calculated by looking at the value of x = 1.10 in the z table which has an area of 0.8643.</em>