Question: Solve this problem Problem 04-13 Algo (Conditional Probability) An oil company purchased an option on land in Alaska. Preliminary geologic studies assigned the following prior

Solve this problem

Solve this problem Problem 04-13 Algo (Conditional Probability) An oil company purchased

Problem 04-13 Algo (Conditional Probability) An oil company purchased an option on land in Alaska. Preliminary geologic studies assigned the following prior probabilities. P(high-quality oil) = 0.30 P(medium-quality oil) = 0.20 P(no oil) - 0.50 If required, round your answers to two decimal places. (a) What is the probability of finding oil? (b) After 200 feet of drilling on the first well, a soil test is taken. The probabilities of finding the particular type of soil identified by the test are as follows. P(soil | high-quality oil) = 0.20 P(soil medium-quality oil) - 0.80 P(soil no oil) = 0.20 How should the firm interpret the soil test? The probability of finding oil is good. Given the probability of finding good soil, the oil company is more likely to find - Select your answer oil. What are the revised probabilities? Select your answer medium-quality Let S = Soil test results high-quality Events P(A) P( SAI) P(Ains) P(AIS) High Quality (A1) Medium Quality (A2) No Oil (A3) P(S) What is the new probability of finding oil? no Problem 04-13 Algo (Conditional Probability) An oil company purchased an option on land in Alaska. Preliminary geologic studies assigned the following prior probabilities. P(high-quality oil) = 0.30 P(medium-quality oil) = 0.20 P(no oil) - 0.50 If required, round your answers to two decimal places. (a) What is the probability of finding oil? (b) After 200 feet of drilling on the first well, a soil test is taken. The probabilities of finding the particular type of soil identified by the test are as follows. P(soil | high-quality oil) = 0.20 P(soil medium-quality oil) - 0.80 P(soil no oil) = 0.20 How should the firm interpret the soil test? The probability of finding oil is good. Given the probability of finding good soil, the oil company is more likely to find - Select your answer oil. What are the revised probabilities? Select your answer medium-quality Let S = Soil test results high-quality Events P(A) P( SAI) P(Ains) P(AIS) High Quality (A1) Medium Quality (A2) No Oil (A3) P(S) What is the new probability of finding oil? no

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