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 oil and the test predicts it? 0.09 0.11 0.36 0.44
We have been given that owners in the area claim that there is a 45% chance that the land has oil. Jason buys a kit that claims to have an 80% accuracy rate of indicating oil in the soil. We are asked to find the probability that the land has oil and the test predicts it.
Since both events are independent, so probability that land has oil and test predicts will be product of probabilities both events.
Therefore, the probability that the land has oil and the test predicts it would be 0.36 and option C is the correct choice.
Since it is stated that the machine he bought only predict about 80%. Thus, about 20% are still possible that there are oils in the land that he owned. In a 100% value = 80% were the 0 possibillites detected by the machine and 20% are still the possibility that it has an oil. => 80% = 0.80 => 20% = 0.20 In the given choices. letter B has the closest value to the 20% that we expected. Thus, let's have B as an answer.