5831金融与交易困难数值题long
Over a short window a dealer observes 7 buys and 3 sells. Ea
题目
Over a short window a dealer observes 7 buys and 3 sells. Each trade is independently a buy with probability p, where p = 0.5 in the no-news state and p = 0.7 in the good-news state. The two states are equally likely a priori. Using the order imbalance as the signal, what is the posterior probability that the market is in the good-news state?
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