Question: A classic test lets a monkey choose M&Ms until the researcher identifies three colors (say blue, red, and green) that the monkey seems to prefer

A classic test lets a monkey choose M&Ms until the researcher identifies three colors (say blue, red, and green) that the monkey seems to prefer about equally. The monkey is then offered a choice between two M&Ms—say, blue and red. If the monkey chooses blue, then the monkey is offered a choice between red and green. Two-thirds of the time, the monkey chooses green, apparently confirming the theory of choice rationalization: after we reject something, we devalue it.

Now suppose that the monkey is not perfectly indifferent between blue, red, and green M&Ms, but in fact prefers blue to red. What is the probability that the monkey also prefers green to red? (Assume that the monkey is randomly chosen from a group of monkeys that are equally likely to prefer one color to another.)

Step by Step Solution

3.37 Rating (153 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

Answer To solve this problem we need to consider the concept of transitivity in preferences Assumpti... View full answer

blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Statistics Econometrics Questions!