An oil company purchased an option on land in Alaska. Preliminary geologic studies assigned the following prior probabilities. P(high-quality oil)=0.60P(medium-quality oil)=0.20P(no oil)=0.20 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)=0.20P(soil | medium-quality oil)=0.80P(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 -medium-qualityhigh-qualitynoItem 2 oil. What are the revised probabilities? EventsP(Ai)P(S | Ai) P(Ai ∩ S) P(Ai | S)High Quality (A1) Medium Quality (A2) No Oil (A3) P(S)= What is the new probability of finding oil?

Answered: An oil company purchased an option on…

Name: An oil company purchased an option on land in Alaska. Preliminary geol
Uploaded: 2024-03-20T07:06:41.000Z
Channel: Bartleby
Description: An oil company purchased an option on land in Alaska. Preliminary geologic studies assigned the following prior probabilities. P(high-quality oil)=0.60P(medium-quality oil)=0.20P(no oil)=0.20 If required, round your answers to two decimal places.(a)

In our daily life, we use probability knowingly or unknowingly. Probability is the chance of…

Events

P(A_i)

P(S | A_i)

P(A_i ∩ S)

P(A_i | S)

High Quality (A₁)

Medium Quality (A₂)

No Oil (A₃)

MATLAB: An Introduction with Applications

6th Edition

ISBN:9781119256830

Author:Amos Gilat

Publisher:Amos Gilat

Chapter1: Starting With Matlab

Section: Chapter Questions

Problem 1P

See similar textbooks

Related questions

Concept explainers

Topic Video

Question

An oil company purchased an option on land in Alaska. Preliminary geologic studies assigned the following prior probabilities.

P(high-quality oil)	=	0.60
P(medium-quality oil)	=	0.20
P(no oil)	=	0.20

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 -medium-qualityhigh-qualitynoItem 2 oil.

What are the revised probabilities?

What is the new probability of finding oil?

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

$Discrete Probability Distributions$

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, statistics and related others by exploring similar questions and additional content below.

Similar questions