George Wolford has suggested the following variation on the Linda problem (see Exercise 1.2.25). The registrar is
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From this you estimate:
P (Mary takes Government 35) = .5,
P (Mary takes Mathematics 23) = .1,
P (John takes Government 35) = .3,
P (John takes Mathematics 23) = .2.
Assume that their choices for courses are independent events. Show that the card with Mathematics 23 and Government 35 showing is more likely to be Mary’s than John’s. The conjunction fallacy referred to in the Linda problem would be to assume that the event “Mary takes Mathematics 23 and Government 35” is more likely than the event “Mary takes Mathematics 23.” Why are we not making this fallacy here?
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Related Book For
Federal Tax Research
ISBN: 9781285439396
10th Edition
Authors: Roby Sawyers, William Raabe, Gerald Whittenburg, Steven Gill
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