Answer:
The expectation for the drilling company is $8,375.
Step-by-step explanation:
We have that the expectation for the drilling company is:

is the income that is expected in relation to natural gas being hit. There is a 1/20 probability that gas is hit. If gas is hit, the income will be $260,000. So

is the income that is expected in relation to oil being hit. There is a 1/40 probability that oil is hit. If oil is hit, the income will be $815,000. So

25,000 is subtracted from the expectation because it is the cost to sink a test well.
So,

The expectation for the drilling company is $8,375.
What's the problem you need help with
Answer:
Step-by-step explanation:
If she sells 8 dozen, she will get exactly 120 dollars. But that is not what the question says.
Sales = 8 * 15 = 120
The question says that she wants to make more than 120 dollars. Therefore the circle must be an open one. B is the proper answer. A is close but A means that she is willing to stop her sales when they reach 120 dollars. Not so.
A is not the answer.