A coin is tossed twice and comes up heads both times. Someone says, “There’s something wrong with this coin. A coin is supposed to come up heads only half the time, not every time.”

a. Is it reasonable to conclude that something is wrong with the coin? Explain.
b. If the coin came up heads 100 times in a row, would it be reasonable to conclude that something is wrong with the coin? Explain.


(a) No. This could well be sampling variation.
(b) Yes. It is virtually impossible for sampling variation to be this large.

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