an oil drilling company knows that it costs $25000 to sink a well. If oil is hit, the income for the drilling company will be $375000. If only natural gas is hit, the income will be $135000. If nothing is hit there will be no income. If the probability if hitting oil is 1/40 and if the probability of hitting gas is 1/20 what is the expectation for the drilling company?

Question

an oil drilling company knows that it costs $25000 to sink a well.  If oil is hit, the income for the drilling company will be $375000.  If only natural gas is hit, the income will be $135000.  If nothing is hit there will be no income.  If the probability if hitting oil is 1/40 and if the probability of hitting gas is 1/20 what is the expectation for the drilling company?