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

p(high-quality oil) = 0.55

p(medium-quality oil) = 0.20

p(no oil) = 0.25

a.What is the probability of finding oil (to decimals)?

b.After 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) = 0.20

p(soil | medium-quality oil) = 0.70

p( soil | no oil) = 0.20

Given the soil found in the test, use Bayes' theorem to compute the following revised probabilities (to decimals).

p(high-quality oil | soil)
p(medium-quality oil | soil)
p(no oil | soil)

What is the new probability of finding oil (to decimals)?

According to the revised probabilities, what is the quality of oil that is most likely to be found?

- Select your answer -High-qualityMedium-qualityNo oil