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hwk2 - ASSIGNMENT 2 STATISTICS(1 Suppose that E and F are...

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ASSIGNMENT 2 STATISTICS (1) Suppose that E and F are events. Determine which of the fol- lowing statements are true and which are false. If the statement is true, explain why; if the statement is false, give a counterex- ample. (a) P ( E F ) P ( E | F ) (b) P ( E | F ) = P ( F | E ) (c) P ( E ) + P ( F ) P ( E F ) + P ( F | E ) (d) P ( E ) P ( E | F ) (e) P ( E F | F ) = P ( E | F (2) An oil company executive is trying to decide whether his com- pany should drill for oil on a newly acquired site. The executive believes that there is a 50% chance of striking oil on this site. To assist him in making his decision, the executive hires a ge- ological consulting agency to perform a seismic survey. The consulting agency will either recommend or not recommend drilling at the site based on the results it obtains. Historical records indicate that this agency has recommended drilling on 90% of known oil producing fields and has recommended against drilling on 80% of known dry holes.
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