Question

g E. (i). An oil company conducts a geological study that indicates that an exploratory oil well should have a 20% chance of striking oil. What is the probability that the first strike comes on the third well drilled

Answer 1

0.128

Explanation:

Given that :

Probability of striking oil = p = 20% = 0.2

Striking occurs on the 3rd well drilled : x = 3

Hence ;

P(x = 3) =?

Using a geometric probability function :

p(x = x) = (1 - p)^(x - 1) * p

P(x = 3) = (1 - 0.2)^(3 - 1) * (0.2)

P(x = 3) = 0.8^2 * 0.2

P(x = 3) = 0.64 * 0.2

P(x = 3) = 0.128