Lipossig
2020-12-29
An option on land in Alaska was bought by an oil company. The following prior probabilities were assigned by preliminary geologic studies.
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 follow.
How should the firm interpret the soil test? What are the revised probabilities, and what is the new probability of finding oil?
Alannej
Skilled2020-12-30Added 104 answers
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