22) E

The question is basically asking us to find out which statement would be more profitable.

1 –
We know that the sum of possible outcomes of drilling = $628,000
If the company pays the insurance premium, then the profit would be = 628000 -200000 = $428,000

2 –
Probability of oil spill = 0.03
0.03 x 10,000,000 = $300,000
If company does not pay insurance and gets an oil spill, expected outcome:
628000 -300000 = $328,000

3 –
If the company decides against drilling, minimum profit = $500,000

So order of favourable option : 3, 1, 2

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