Calculate expected values

Assignment Help Engineering Mathematics
Reference no: EM131524070

Question: In Problem, calculate the probability that the test is positive and a dome structure exists [P(+ and Dome)]. Now calculate the probability of a positive result, a dome structure, and a dry hole [P(+ and Dome and Dry)]. Finally, calculate P(Dome | + and Dry).

Problem: In the oil-wildcatting problem, suppose that the company could collect information from a drilling core sample and analyze it to determine whether a dome structure exists at Site 1. A positive result would indicate the presence of a dome, and a negative result would indicate the absence of a dome. The test is not perfect, however. The test is highly accurate for detecting a dome; if there is a dome, the test shows a positive result 99% of the time. On the other hand, if there is no dome, the probability of a negative result is only 0.85. Thus, P(+ | Dome) = 0.99 and P(- | No Dome) = 0.85. Use these probabilities, the information given in the example, and Bayes' theorem to find the posterior probabilities P(Dome | +) and P(Dome | -). If the test gives a positive result, which site should be selected? Calculate expected values to support your conclusion. If the test result is negative, which site should be chosen? Again, calculate expected values.

Reference no: EM131524070

Previous Q& A

  The strategic implications to each firm

Analyze the merger of Anheuser Busch/Miller that took place in 2015. The strategic implications to each firm

  Further long term capital to fund its continuing growth

it now needs further long term capital to fund its continuing growth.

  Explain the operations of the firms within the industry

Choose a perfectly competitive supplier or industry. Briefly explain the operations of this firm or the firms within the industry.

  Construct a two-way sensitivity analysis graph

Again referring to Figure, suppose the decision maker has not yet assessed P(Dry) for Site 2 or P(Dome) for Site 1. Let P(Dry) = p and P(Dome) = q.

  An african american child suffering from depression

Examine Case Study: An African American Child Suffering From Depression.You will be asked to make three decisions concerning the medication to prescribe.

  What is the cash break-even point-variable cost per unit

What is the variable cost per unit? If the selling price is $42.50 per unit, what is the cash break-even point?

  How you arrived at your determination in given step

A brief summary of firm's operations and industry in which it ooperates. Provide a thorough discussion of how you arrived at your determination in step c above.

  How joseph might analyse and resolve the dilemma

Show your utilisation of either Thomas White or Chris MacDonald's methodology to demonstrate how Joseph might analyse and resolve the dilemma

  Discuss about the fetal abnormality

What theory do you agree with? How would that theory determine or influence the recommendation for action?

  What is the average cost per pair

What were total production costs? What is the marginal cost per pair? What is the average cost per pair?


Write a Review


Similar Q& A

  Find the profit-maximizing sustainable equilibrium

Suppose that in the absence of human intervention the stock of tuna (z) would change according to the following equation: dz/dt = 10z - 0.02z2.

  Rule for objective function coefficients

Use the 100% rule for objective function coefficients and right hand side ranges where appropriate. Do not run the changed model. Assume that any changes given in a of the problem are the only changes being made in the model

  Develop an analytic formula for trigger price

A trigger FRA is a FRA that comes into existence if and only if the forward rate is above H at the start of the FRA. Develop an analytic formula for its price if the forward rate follows geometric Brownian motion.

  Calculate total fixed cost and total variable cost for year

Complete a regression analysis to determine total annual fixed and variable costs using the sales revenue and wage costs shown in Problem.

  Derive newtons method for finding the zeros

Derive Newtons method for finding the zeros of a twice continuously differentiable function - find a Lipschitz constant for some interval containing and solve the ODE and compare your estimated interval of existence to the actual one.

  Find a factorization of b

Find a factorization B = LDLT, where L is lower triangular with ones on the diagonal and D is a diagonal matrix with nonnegative diagonal elements.

  Derive analytical expression for oc curve as function of p

Consider the single sampling plan with n = 10 and c = 0. Derive an analytical expression for the OC curve as a function of p.

  Management scientist software

Determine the optimal project selection using the Management Scientist software, including the projects to included and the total net present value contribution. Provide a narrative that explains the Management Scientist solution used.

  How does neoclassicism rebel against rococo

How does Neoclassicism rebel against Rococo? What was the goal of Neoclassical art? What was the relationship between Neoclassical architecture and Renaissance architecture?

  Construct the payoff matrix

Cournot duopolists face the inverse demand function p = 200 - 0.5X, where p is selling price and X is the total output of both firms.

  What is the density of the unknown liquid

When the rock is totally inunersed in water, the tension is 28.4 N. When the rock is totally inunersed in an unknown liquid, the tension is 18.6 N. What is the density of the unknown liquid?

  Compute the expected number of withdrawals

A university found that 20% of its students withdraw without completing the introductory statistics course. Assume that 20 students registered for the course.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd