Damn, you are right! I wonder why the first two instances of this puzzle I googled included that info.
Still, it's not about encoding "9 bits of information in 1 bit".
Still, it's not about encoding "9 bits of information in 1 bit".
On the other hand, you must encode information on the colour of 9 hats, and only the last person in the line is free to provide some information. He can’t possibly know the colour of his own hat, so he can only guess – or use his turn to provide 1 bit of information to the rest of the group (while the other people have to shout out their correct hat colour). The difficulty lies in figuring out why the puzzle as stated does not need you to encode 9 bits using 1 bit …