6 (20 points ). Updating Biases 5 points) Teddy is a gullible fellow. When he hears a new rumor, he tends to believe it much more than is warranted. Teddy overinfers from new information . Show how the odds form of Bayes ' rule can be used to model Teddy's learning process. (5 points ) Given this learning process , does Teddy exhibit recency bias? I.e . does he overweight recent signals relative to older ones more than the Bayesian benchmark suggest that he should ? Show your work . 5 points ) It turns out, Teddy is even worse at learning than previously thought . He overinfers from new information and neglects his base rate ! Use the odds form of Bayes ' rule to model Teddy's learning process . (5 points ) Given the learning process in the previous question , for what values of the weighting parameters loes Teddy exhibit recency bias ? For what values does he exhibit the opposite (overweighting of old ignals )? Show your work