Using a distribution over parameter values
Start with a prior distribution
over p. In this case we used a
uniform distribution.
Multiply the prior probability of
each parameter value by the
probability of observing a head
given that value.
Then scale up all of the
probability densities so that
their integral comes to 1. This
gives the posterior distribution.
probability
density
1
area=1
p
0
1
probability
density
1
2
probability
density
area=1