Question: An oil explorer orders seismic tests to determine whether oil
An oil explorer orders seismic tests to determine whether oil is likely to be found in a certain drilling area. The seismic tests have a known reliability: When oil does exist in the testing area, the test will indicate so 85% of the time; when oil does not exist in the test area, 10% of the time the test will erroneously indicate that it does exist. The explorer believes that the probability of existence of an oil deposit in the test area is 0.4. If a test is conducted and indicates the presence of oil, what is the probability that an oil deposit really exists?
Answer to relevant QuestionsBefore marketing new products nationally, companies often test them on samples of potential customers. Such tests have a known reliability. For a particular product type, a test will indicate success of the product 75% of ...The probability that a graduating senior will pass the certified public accountant (CPA) examination is 0.60. The probability that the graduating senior will both pass the CPA examination and get a job offer is 0.40. Suppose ...An accounting firm carries an advertisement in The Wall Street Journal. The firm estimates that 60% of the people in the potential market read The Wall Street Journal; research further shows that 85% of the people who read ...At a certain university, 30% of the students who take basic statistics are first year students, 35% are sophomores, 20% are juniors, and 15% are seniors. From records of the statistics department it is found that out of the ...The number of telephone calls arriving at an exchange during any given minute between noon and 1:00 P.M. on a weekday is a random variable with the following probability distribution. X P(x) 0 .... 0.3 1 .... 0.2 2 ...
Post your question