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If the test indicates that there is no oil in the field, what is the probability that the field contains oil?

A First Course in Probability (10th Edition)

10th Edition

ISBN:9780134753119

Author:Sheldon Ross

Publisher:Sheldon Ross

Chapter1: Combinatorial Analysis

Section: Chapter Questions

Problem 1.1P: a. How many different 7-place license plates are possible if the first 2 places are for letters and...

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Question

Joon wants to determine whether his San Jose oil field will yield oil. He has hired a
geologist to run tests on the field. If there is oil in the field, there is a 95% chance that the test will
indicate oil. If the field contains no oil, there is a 5% chance that the test will indicate oil. If the
test indicates that there is no oil in the field, what is the probability that the field contains oil?
Before the test, Joon believes that there is a 10% chance that the field will yield oil.

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