Question: What is the answer for this question Question 3: Assume you consider investing in an off-shore oil industry. You receive a test report which states

What is the answer for this question

Question 3: Assume you consider investing in an off-shore oil industry. You receive a test report which states that an accessible oil field is located in one particular site you explored. Here is what you know about the relevant probabilities: - You know that designated off-shore plots give access to oil fields with a probability of Pr=0.2. - The test used to identify an oilfield correctly identifies oil fields with probability Pr=0.95 where an oil field is actually present. - The test also gives false positives with a probability of Pr=0.15. What is the likelihood that the exploration site in question does in fact contain an off-shore oil field? Explain your answer. lec4

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