Prepare a probability table

Assignment Help Management Theories

Reference no: EM131460434

Question: In 2008, it appeared that rising gas prices had made Californians less resistant to offshore drilling. A Field Poll survey showed that a higher proportion of Californians supported the idea of drilling for oil or natural gas along the state's coast than in 2005 (The Wall Street Journal, July 17, 2008). Assume that random drilling for oil only succeeds 5% of the time. An oil company has just announced that it has discovered new technology for detecting oil. The technology is 80% reliable. That is, if there is oil, the technology will signal "oil" 80% of the time. Let there also be a 1% chance that the technology erroneously detects oil, when in fact no oil exists. In a report, use the sample information to:

1. Prepare a probability table.

2. Solve for the probability that, on a recent expedition, oil actually existed but the technology detected "no oil" in the area.

Reference no: EM131460434

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