We do ten experiments. A scientist observes the results, constructs a theory consistent with them, and uses it to predict the results of the next ten. We do them and the results fit his predictions. A second scientist now constructs a theory consistent with the results of all twenty experiments.
The two theories give different predictions for the next experiment. Which do we believe? Why?
One of the commenters links to Overcoming Bias, but as of 11PM on Sep 28th, David's blog's time, no one has given the exact answer that I would have given. It's interesting that a question so basic has received so many answers.
Tyrrell, um. If "the ball will be visible" is a better theory, then "we will observe some experimental result" would be an even better theory?
Solomonoff induction, the induction method based on Kolmogorov complexity, requires the theory (program) to output the precise experimental results of all experiments so far, and in the future. So your T3 would not be a single program; rather, it would be a set of programs, each encoding specifically one experimental outcome consistent with "the ball is visible." (Which gets rid of the problem that "we will observe some experimental result" is the best possible theory :))