$1.$ Using Bayes Theory, determine the appropriate action for the company.

$2.$ Find the posterior probabilities..

$3.$ How much expected profit Cactus Petroleum would get if they have perfectinformation?

$4.$ What would be the maximum amount you would be willing to pay for theseismic test, such that you would prefer to conduct it and then decide?

$5.$ How much expected additional profit can be derived from the seismic testing?

$6.$ What is the expected net gain from the seismic test?

$7.$ What recommendations can you give to Cactus Petroleum?