A Concise Resolution to the Two Envelope Paradox
Abstract
In this paper, I will demonstrate a new perspective on the Two Envelope Problem. I hope to show with convincing clarity how the paradox results from an inherent problem pertaining to the interpretation of Bayesian probability. Specifically, a subjective probability that is inconsistent with reality can mislead reasoning based on Bayesian decision theory.
- Publication:
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arXiv e-prints
- Pub Date:
- February 2012
- DOI:
- 10.48550/arXiv.1202.4669
- arXiv:
- arXiv:1202.4669
- Bibcode:
- 2012arXiv1202.4669B
- Keywords:
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- Statistics - Other Statistics