The Gompertz Oil Company drills for oil in old oil fields that large companies have stated are uneconomic. The decision to drill will depend upon a number of factors, including the geology of the...

The Gompertz Oil Company drills for oil in old oil fields that large companies have stated are uneconomic. The decision to drill will depend upon a number of factors, including the geology of the proposed sites. Drilling experience shows that there is a 0.40 probability of a type A structure present at the site given a productive well. It is also known that 50% of all wells are drilled in locations with a type A structure and 30% of all wells drilled are productive. Use the information provided to answer the following questions: (a) What   is the probability of a well drilled in a type A structure and being productive? (b) What is the probability of having a productive well at the location if the drilling process begins in a location with a type A structure? and (c) Is finding a productive well independent of the type A structure?