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You have caught an instance of the infamous off-by-one error in that popular textbook whose name we shall not mention again. To repeat, it is correct that "the cost $c_1=1$, $\Phi_0=0$", "$num_1=size_1=1$ $\implies$ $\Phi_1 = 2\cdot1-1 =1$" and " $\hat{c_1}=$ $c_1+\Phi_1-\Phi_0$ $=2$". It is incorrect to state that $\widehat c_i=...


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