If Digger's test indicates that there is no oil in the field, what is the probability that the field contains oil?
Contingency Table
A contingency table can be defined as the visual representation of the relationship between two or more categorical variables that can be evaluated and registered. It is a categorical version of the scatterplot, which is used to investigate the linear relationship between two variables. A contingency table is indeed a type of frequency distribution table that displays two variables at the same time.
Binomial Distribution
Binomial is an algebraic expression of the sum or the difference of two terms. Before knowing about binomial distribution, we must know about the binomial theorem.
Question 4:
Let A is defined as the field has oil, and B is defined as the digger test will indicate oil.
There is a 90% probability that Digger's test will indicate oil when there is oil in the field. That is, , there is a 15% chance that Digger's test will indicate oil when the filed contains no oil. That is, . there is a 15% chance that the field will yield oil. That is, .
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