To clarify my last post (I first made edits, then saved, then saw 8 or so posts after it - my bad):
The issue is that 18.5(d) asks you to somehow change your "winning" probability from 50%
without yet having any information about the shuffle results (i.e., without having yet dealt any cards from the deck). You are therefore confronted with a universe of possible outcomes in which exactly half will "win" and half will "lose." Of course your chances of "winning" are therefore 50%, and nothing can be done to change that.
BUT, once you flip some cards from the deck, you eliminate a number of outcomes from the possible universe of results. If you eliminate more "losing" outcomes than "winning" outcomes, your probability of winning -
knowing that information - goes up. And vice versa if you eliminate more "winning" than "losing" outcomes.
Back to the Dominion example, where "winning" = Estate on the bottom, drawing your first hand of 5 cards eliminates all "losing" outcomes in which (1) the 3 Estates are in the top 5 cards; and (2) 2 of the 3 Estates are in the top 5 cards. Whereas the only "winning" outcomes eliminated are those in which
none of the Estates are in the top 5 cards. More losing outcomes were eliminated than winning outcomes, and that is why the chance of winning goes up.
But notably, this is NOT what happened. You didn't take CCCEE shuffled, and then ADD CCCCE to the top. You took CCCCCCCEEE, shuffled, and then revealed CCCCE. This produces different odds, even though we both know that the bottom 5 cards are the same set of CCCEE in some order.
No, these two situations produce the same odds, AFTER having revealed CCCCE. In the second scenario, while the ORIGINAL probability of Estate-on-the-bottom is 30% (vs. 40% in the first scenario), the CONDITIONAL probability of Estate-on-the-bottom,
after revealing the top 5 cards, is 40%.
And yet, if I've flipped over 12 red cards, and 4 black cards, the odds that the next card is black is STILL 50%
No, it's not. Per 18.5(c), the odds that the next card is black in your example (with 22 black and 14 red remaining in the deck) are 22/36, or 61.1%.
Say you flip over 26 red cards and 0 black cards. Are the odds of your next card being black still 50%?