Question

Select the correct answer.

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?

A.
0.09

B.
0.11

C.
0.36

D.
0.44

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Answer 1

C. 0.36

Explanation:

Answer 2

C. 0.36

Explanation:

There is already a 45% chance of having oil on the land.

The oil kit has an 80% accuracy rate.

Therefore the kit has an 80% chance, of that 45% chance, of detecting oil. (Assume the owners in the area are correct in their 45% assumption)

This can be expressed as 80%*40% or 0.8*0.45

= 0.36 or 36%

Hope this helps!