Past exam of the mathematics course of the University of Cambridge / 2018 / ib / Paper 4 / 19H / Solution

With the uniform prior, the binomial likelihood gives the Beta distribution posterior $\mathrm{Beta}(s+1,n-s+1)$. Under squared-error loss, the Bayes estimator is the posterior mean:

The production manager's prior gives posterior density proportional to $p^{s+1}(1-p{)}^{n-s}$. Minimizing $\mathbb{E}[(1-p)(\hat{p}-p{)}^2\mid X=s]$ gives the weighted posterior meanusing the supplied beta function. Cross multiplication shows ${\hat{p}}_P>{\hat{p}}_G$ exactly when $n>2s$, so it is greater unless $s\ge n/2$.