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

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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) = 0.50 P(medium-quality oil) = 0.15 Plno oil) = 0.35 a. What is the probability of finding oil (to 2 decimals)? 0.70 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 given below. P(soil high-quality oil) = 0.15 P(soil medium-quality oil) - 0.85 P(soilno oil) = 0.15 Given the soil found in the test, use Baves theorem to compute the following revised probabilities (to 4 decimals). P(high-quality oil soil) P(medium-quality oil soil) P(no oil soil) What is the new probability of finding oil (to 4 decimals)? According to the revised probabilities, what is the quality of oil that is most likely to be found? Medium-quality . 0 Toon ko Exercise 01:59 Algo (Bayes Theorem)

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