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?
There is a 36% chance that he will detect oil.
You get this number by taking 80% of 45. I got this by multiplying 45 by .80
Answer:
0.09 or 9%.
Step-by-step explanation:
We have been given that 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.
We will use conditional probability formula to get our answer.
We have been given that probability that land has oil is 45% or 0.45.
Let us find the probability that test predicts an inaccurate result. As probability of predicting an accurate test is 80%, so probability that test will be inaccurate will be 100%-80%=20% or 0.20.
\(\text{Probability that the land has oil and the test predicts it}=0.45\times 0.20\)
\(\text{Probability that the land has oil and the test predicts it}=0.09\)
Therefore, the probability that the land has oil and the test predicts it will be 0.09 or 9%.