We were set an algorithm problem in class today, as a \"if you figure out a solution you don\'t have to do this subject\". SO of course, we all thought we will give it a go.
Maybe you are all making this too hard.
Obviously, you need an external reference of some sort to rank the probability that X is in category Y. Is it possible that he's testing your "out of the box" thinking and that YOU could be the external reference? That is, the algorithm is a simple matter of running through each category and each word and asking YOU (or whoever sits at the terminal) whether word X is in the displayed category Y. There are a few simple variations on this theme but they all involve blowing past the Gordian knot by simply cutting it.
Or not...depends on the teacher.