Question

Helpppppppp. Jason inherited a piece of land from his great-uncle. Owners in the area claim that there is a 45% chance that the land has oil. Jason decides to test the land for oil. He buys a kit that claims to have an 80% accuracy rate of indicating oil in the soil. What is the probability that the land has no oil and the test shows that it has oil? A. 0.09 B. 0.11 C. 0.36 D. 0.44

Answer 1

Jason Inherit a land with a 45% chance of having oil.

Explanation:

The probability of the land having oil is = P ( O) = 45 /100

The probability of the land having oil is= Q(O ) =55/100

The machine has an accuracy of 80%. This suggests that 8 out of 10 times the machine will give a wrong reading.

The probability of the correct reading is= P(M)=80/100

The probability of the incorrect reading is=Q(M)=20/100

The case when the machine predicts there is no oil and there is indeed oil can be calculated:Probability=Probability of oil present × probability of the incorrect reading

Probability=P(O) x Q(M)

Probability=45/100 x 20/100

Probability=9/100

The probability of the test predicting no oil in land and the land has oil is 0.09 or 9%