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An oil company purchased an option on land in Alaska. Preliminary geologic studies assigned the following prior probabilities. P(high-quality oil) = 0.35 P(medium-quality oil) = 0.20 P(no oil) 0.45 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 What are the revised probabilities? Events High Quality (A1) Medium Quality (A2) No Oil (A3) P(A₁) What is the new probability of finding oil? P(S | A₁) P(S)= P(Ains) P(Ai | S) oil.

An oil company purchased an option on land in Alaska. Preliminary geologic studies assigned the following prior probabilities. P(high-quality oil) = 0.35 P(medium-quality oil) = 0.20 P(no oil) 0.45 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 What are the revised probabilities? Events High Quality (A1) Medium Quality (A2) No Oil (A3) P(A₁) What is the new probability of finding oil? P(S | A₁) P(S)= P(Ains) P(Ai | S) oil.

Calculus For The Life Sciences
Calculus For The Life Sciences
2nd Edition
ISBN:9780321964038
Author:GREENWELL, Raymond N., RITCHEY, Nathan P., Lial, Margaret L.
Publisher:GREENWELL, Raymond N., RITCHEY, Nathan P., Lial, Margaret L.
Chapter13: Probability And Calculus
Section13.CR: Chapter 13 Review
Problem 8CR
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Need help on parts A & B (FYI there is multiple parts in part B) (i.e. all blank text-boxes) (All needed data is in picture)
6. 7. 8. 9. ♥ An oil company purchased an option on land in Alaska. Preliminary geologic studies assigned the following prior probabilities. P(high-quality oil) = 0.35 P(medium-quality oil) = 0.20 P(no oil) = 0.45 • O 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? Events High Quality (A1) Medium Quality (A2) No Oil (A3) P(Ai) What is the new probability of finding oil? P(S | A₁) P(S)= P(A₁n S) P(AI | S)
Transcribed Image Text:6. 7. 8. 9. ♥ An oil company purchased an option on land in Alaska. Preliminary geologic studies assigned the following prior probabilities. P(high-quality oil) = 0.35 P(medium-quality oil) = 0.20 P(no oil) = 0.45 • O 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? Events High Quality (A1) Medium Quality (A2) No Oil (A3) P(Ai) What is the new probability of finding oil? P(S | A₁) P(S)= P(A₁n S) P(AI | S)
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