Ten heads and the double-headed coin
Asked at Jane Street, Citadel
A jar contains coins: are fair and one is double-headed. You pick a coin uniformly at random, flip it times, and see heads.
What is the probability that you picked the double-headed coin? And what is the probability the next flip is a head?
Show a hint
Compare the two ways to see ten heads: the rare coin that does it always, versus a common coin doing something merely unlikely.