An oil exploration firm is formed with enough capital to finance ten explorations. the probability of a particular exploration being successful is .1. Assume the explorations are independent. Find the mean and variance of the number of successful explorations.
Refer to the above problem suppose the firm has a fixed cost of $20000 in preparing equipment prior to doing its first exploration. if each successful exploration costs $30000 and each unsuccessful exploration costs $15000, find the expected total cost to the firm for its ten explorations