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Consider testing whether a coin is fair. We saw one method from Example 3.2.2 using a confidence
interval for proportions. However, that relies on the Central Limit Theorem. Could this be tested using
only a few coin tosses?
If a coin was tossed 10 times, there are a few clear cases. If 5 heads were observed, it seems
reasonable to claim that the coin is fair; if 0 or 10 heads were observed, it seems reasonable to claim
that the coin is biased. What about the other possibilities, such as 3 heads?
Hypothesis tests aim to answer questions similar to this one by applying probability concepts. In
particular, these tests provide statistical inference for a parameter (similar to point estimation and
interval estimation) or for model evaluation.
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