# M7.4.13

Solves real-world problems involving

**conditional probability and joint probability**.### An Example of the Value of Information

Using "expected value" to determine the value of information. Examples: Without information, should we drill for oil or not? With geological information, should we drill or not?

### Confidence in Medical Tests

Medical tests are not always correct. When a doctor and a patient receive the rnresults of a test, what is the probability that the report is correct?