The Monty Hall Problem is a great example to demonstrate Bayesian Updating with Discrete Priors. Monty Hall Problem The monty hall problem is based on a TV show in which one could either win a car or nothing. The participant was presented three doors. Behind one was a car, behind the others were goats. After … Continue reading Monty Hall Problem

Category: Examples

# Auction Theory

Todays blog-post will be about Auction Theory. We will try to apply what we've learned and try to decide if we should rather sell our goods with a posted price or auction them off. Warning: This blog-post will contain one thing we haven't learned so far, which is order statistics. I promise I will write a … Continue reading Auction Theory