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) = 0.15 P( no oil) = 0.30 a. What is the probability of finding oil (to 2 decimals)? 0.7 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) = 0.20 P(soil medium-quality oil) = 0.80 P(soil no oil) = 0.20 Given the soil found in the test, use Bayes' theorem to compute the following revised probabilities (to 4 decimals). X P(high-quality oil soil) 0.3125 X P(medium-quality oil soil) 0.5 P(no oil soil) 0.1875 X What is the new probability of finding oil (to 4 decimals)? 0.941 X According to the revised probabilities, what is the quality of oil that is most likely to be found? Medium-quality