Dante Development Corporation is considering bidding on a contract for a new office building complex. Figure 4.17 shows the decision tree prepared by one of Dante’s analysts. At node 1,….
. What does this ratio alone suggest about whether or not your friend is cheating you?
Every time you and your friend are just free get together to watch movies, you flip a coin to determine who gets to choose the movie. Your friend always picks heads, and every Friday for 10 weeks, the coin lands on heads. You develop a hypothesis that the coin has two heads sides, rather than both a heads side and a tails side. Set up a Bayes factor for the hypothesis that the coin is a trick coin over the hypothesis that the coin is fair. What does this ratio alone suggest about whether or not your friend is cheating you?