S = <phi, phi, phi> Training data = <square, pointy, white> => Yes (positive example). How will S be represented after encountering this training data?

Correct Answer: <square, pointy, white >
Initially, S contains phi, which implies that no example is positive. It encounters a positive example, which is inconsistent with the current hypothesis. So, it generalizes accordingly to approve the new example. It thus takes the values of the training instance.