An oil company is considering two sites on which to drill. The sites are described in the following table.
Site A:
Profit if oil is found: $180 million
Loss if no oil is found: $35 million
Probability of finding oil: 0.2
Site B:
Profit if oil is found: $270 million
Loss if no oil is found: $40 million
Probability of finding oil: 0.1
Which site has the larger expected profit? Select the correct answer below and, if necessary, fill in the answer box to complete your choice.
OA. Site A has the larger expected profit by $
(Round to the nearest tenth as needed.)
million.
OB. Site B has the larger expected profit by $
(Round to the nearest tenth as needed.)
OC. The expected profits for both sites are the same.
million.