Question 10 ( 1 point ) Consider another deposit on which Coquille Oil has a lease with two years to run ( 2015 and 2016 ) .

Question 10 ( 1 point )Consider another deposit on which Coquille Oil has a lease with two years to run( 2015 and 2016 ) . There are exactly 190 units available at the beginning of 2015 Theextraction costs are exactly as those faced by Wyoff in question 4 Coquille is a smallfirm and its decision makers consider the world price of oil to be outside the control ofthe firmBefore any extraction can take place , the Oil Minister of an unnamed Persian Gulfstate gives orders to cut production , driving up the world price of oil to $1 05 for 2015The price in 2016 is uncertain , as other Gulf states have indicated their willingness toincrease output to counter the actions of the above - mentioned Oil Minister Coquillebelieves that the price of oil could be any of five different values all of which areequally likely . The prior probability distribution of oil prices for 2016 looks likePrice Probability$0.55 0.25080 0.2$105 0.2$1. 30 0.2$1.55 0.2How much will Coquille plan to extract in 2015 ?( Bear in mind that the price in 2015 is expected to remain $1 05 )1 . Fewer than 25 units2 . At least 30 units but fewer than 35 units3 . At least 35 units but fewer than 40 units4 . At least 25 units but fewer than 30 units5 . At least 40 units