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Trusting an unreliable neighbour about the cat

Question

On any given day your cat escapes the house with probability 0.0010.001. When you phone your neighbour to ask, they answer yes or no, but lie with probability 0.10.1, independently of what actually happened. The neighbour tells you the cat got out today. What is the probability that it really did?

Short answer

About 0.00890.0089. By Bayes, the posterior is (true yes) over (all yeses): 9×10−49×10−4+0.0999=9×10−40.1008\dfrac{9\times10^{-4}}{9\times10^{-4}+0.0999}=\dfrac{9\times10^{-4}}{0.1008}. False reports from the 99.9% of quiet days swamp the rare true ones — a base-rate effect.

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