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First of all thank you for writing this book. It's been an informative read and the examples are fun and challenging.
That being said I believe there is a typo in Example 6-8:
312 outperforming portfolios must mean there are 430.5 honest members of congress. It is quite funny to say that there is a half-honest politician, but 313 outperforming portfolios does result in a whole number of honest and dishonest members of congress who add up to 538. So it makes more sense if the number of outperforming portfolios is 313.
The text was updated successfully, but these errors were encountered:
In the likely event that I am incorrect here is how I reached that conclusion.
Total members of congress = 538
op = number of outperforming porfolios = 312
hc = honest chance = 50% or 0.5
dc = dishonest chance = 90% or 0.9
hm + dm = 538 or honest members + dishonest members = 538
(honest members * honest chance) + (dishonest members * dishonest chance) = 312
I'm not positive I understand the question, but it sounds like you are bothered by the fact that the mean of the posterior distribution is not an integer. I think that's normal. Like the average value if you roll a six-sided die is 3.5. But maybe I'm missing your point.
First of all thank you for writing this book. It's been an informative read and the examples are fun and challenging.
That being said I believe there is a typo in Example 6-8:
312 outperforming portfolios must mean there are 430.5 honest members of congress. It is quite funny to say that there is a half-honest politician, but 313 outperforming portfolios does result in a whole number of honest and dishonest members of congress who add up to 538. So it makes more sense if the number of outperforming portfolios is 313.
The text was updated successfully, but these errors were encountered: