You and other commenters make it sound obvious, but I'd say the ideal location of the cover-up noise is actually a tricky question. Our brains are exceedingly good at separating different sound sources, but a bathroom is a textbook example of a space that gives a shared acoustic profile to all the sounds within, causing them to be grouped together in our minds, and possibly identified as a single source.
As a thought experiment, imagine that the Loodio is actually playing loud farting/plopping noises. In that case, placing it outside the bathroom would make it easy to distinguish between the "real" and the "fake" noises: the real ones have the bathroom acoustics. Placing it inside would make it impossible to discern.
Now imagine that the Loodio is playing dubstep, which is barely a step removed from "loud farting/plopping noises". What is the ideal location now?
As a thought experiment, imagine that the Loodio is actually playing loud farting/plopping noises. In that case, placing it outside the bathroom would make it easy to distinguish between the "real" and the "fake" noises: the real ones have the bathroom acoustics. Placing it inside would make it impossible to discern.
Now imagine that the Loodio is playing dubstep, which is barely a step removed from "loud farting/plopping noises". What is the ideal location now?