Question: The developer of a new condominium complex claims that 3 out of 5 buyers will prefer a two-bedroom unit, while his banker claims that it

The developer of a new condominium complex claims that 3 out of 5 buyers will prefer a two-bedroom unit, while his banker claims that it would be more correct to say that 7 out of 10 buyers will prefer a twobedroom unit. In previous predictions of this type, the banker has been twice as reliable as the developer. If 12 of the next 15 condominiums sold in this complex are two-bedroom units, find

(a) the posterior probabilities associated with the claims of the developer and banker;

(b) a point estimate of the proportion of buyers who prefer a two-bedroom unit.

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