question archive A coin is equally likely to be fair or unfair
A coin is equally likely to be fair or unfair
Subject:EconomicsPrice: Bought3
A coin is equally likely to be fair or unfair. If it is unfair the probability that it comes up heads is 75%. Suppose you flip the coin and it comes up heads twice in a row. What is the probability that it is a fair coin? O 1/2 7/16 7/32 4/13 0000 6/19 Do you think most people would overestimate or underestimate the probability that the coin is fair? 0 Overestimate O Underestimate 0 Neither Finally, suppose that after the two HH flips George is told that the coin is in fact fair. He then has a chance to pick heads or tails on the next flip and if he's right he will receive a small payment. What do you think he will pick? 0 He is equally likely to pick either
