Use Bayes' Theorem to Find the Indicated Probability

question 110

Multiple Choice

Use Bayes' theorem to find the indicated probability.
-Pierre has three coins one of which is biased so that it turns up tails 80% of the time. If he randomly selects one of the coins, tosses it three times, and obtains three tails, what is the probability that this is the biased coin?

• A) 0.512
• B) 0.739
• C) 0.672
• D) 0.333

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Definitions:

Pure Monopoly

A market structure where a single seller controls the entire market for a particular product or service, with no close substitutes available.

Pure Competition

A market situation characterized by an infinite number of buyers and sellers, homogeneous products, and no barriers to entry or exit.

Monopolistically Competitive

A market structure where many firms sell products that are similar but not identical, allowing for significant influence over price due to product differentiation.

Pure Monopolist

is a market participant that solely controls the supply of a unique product or service without close substitutes, allowing for significant control over prices.