Sorry but I think you may have misunderstood the question since your answer doesn’t make any sense to me. The main problem I was puzzled about was whether or not the odds of getting a lollipop are 1:1 (as is the probability of the fair coin coming up heads) or 1001:1 (whether or not the simulations affect the self-location uncertainty). As shiminux said it is similar to the sleeping beauty problem where self-location uncertainty is at play.
Sorry but I think you may have misunderstood the question since your answer doesn’t make any sense to me. The main problem I was puzzled about was whether or not the odds of getting a lollipop are 1:1 (as is the probability of the fair coin coming up heads) or 1001:1 (whether or not the simulations affect the self-location uncertainty). As shiminux said it is similar to the sleeping beauty problem where self-location uncertainty is at play.