Exercise 4 Suppose a factory manufacture three types of coins, with probability showing up Heads to be 0.3, 0.5, and 0.9, respectively. We are given one of these coins and do not know which type it is, and our initial belief is that the three types are equally likely. We toss the coin 10 times and get 3 Heads. Using Bayesian inference, what probabilities should we assign to the three types after this observation?

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Exercise 4
Suppose a factory manufacture three types of coins, with probability showing up Heads
to be 0.3, 0.5, and 0.9, respectively. We are given one of these coins and do not know which
type it is, and our initial belief is that the three types are equally likely. We toss the coin
10 times and get 3 Heads. Using Bayesian inference, what probabilities should we assign to
the three types after this observation?
Transcribed Image Text:Exercise 4 Suppose a factory manufacture three types of coins, with probability showing up Heads to be 0.3, 0.5, and 0.9, respectively. We are given one of these coins and do not know which type it is, and our initial belief is that the three types are equally likely. We toss the coin 10 times and get 3 Heads. Using Bayesian inference, what probabilities should we assign to the three types after this observation?
Expert Solution
Step 1

Given:

Let A1,A2, and A3 be the hypothesis that a coin is of type 1, type 2, and type 3 respectively.

Thus, the prior probabilities of getting a type of coin are given below:

 P(A1)=1/3P(A2)=1/3P(A3)=1/3

Let H be the event of getting a Head in the throw when we select a coin.

Thus, the probability of getting a head type of coin is given below:

P(H  A1)=0.3P(H  A2)=0.5P(H  A3)=0.9

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