Exam 6: Decision Analysis and Expected Value

Dan Hein owns the mineral and drilling rights to a 1,000 acre tract of land. If he drills a well and does $\textbf{ not }$ strike oil his net loss will be $50,000, but if he drills a well and strikes oil his net gain will be $100,000. If he does $\textbf{ not}$ drill, his loss is the cost of the mineral and drilling rights, which amount to $1000. For Dan's decision problem, the variable "drill the well" is one of the ___.

The volume of liquid in an unopened 5.68 litre can of paint is an example of ___.