[QUOTE=Voyager]
If the hypothesis is the coin is fair, and the null hypothesis is that it is rigged, you can’t really say anything, since, as you say, any outcome is equally probable, and one might say that the coin is rigged to produce exactly what is observed. I think you’d have to go with a hypothesis that the coin is rigged to, say, produce the same result on each flip. The null hypothesis then would be that the coin is fair. Given n results that match the hypothesis, it would be easy then to compute if this were due to chance, since the hypothesis expects a certain result.
And I agree that this can never prove that any outcome is causal.
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I’m saying, if the null hypothesis is that the coin is fair, then, if things are set up properly, all N-length observations go the same way: they all are events of probability 2^(-N), and thus should either all reject or all fail to reject the null hypothesis. You can’t say “I thought the coin was fair, but then I tossed 50 heads in a row, which is exceedingly unlikely, so I guess it probably wasn’t fair” unless you’re also willing to say “I thought the coin was fair, but then I tossed the sequence {H, T, T, T, H, H, T, H, T, …} of 50 flips, which is exceedingly unlikely, so I guess it probably wasn’t fair”.
On the other hand, if your null hypothesis is that the coin is rigged in some particular nice way (e.g., rigged with a 70% heads bias but separate flips still being independent), then, conceivably, some potential observed sequences would be rejecters while others would be fail-to-rejecters. This whole approach is still pretty backwards, though, as explained below. And if you don’t assume some particular nice rigging, but just ponder the possibility that the coin is rigged at all in any way, then this is just the dual to pondering the possibility that the coin is fair, and the same problems arise with attempting to gain any information on the likelihood of the hypothesis.
[QUOTE=Voyager]
Now for the link, I’m not exactly sure what they mean by P(Null|Data). Was your example an attempt at illustrating this?
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P(Null|Data) = P(Null hypothesis is true | The observations we made coming out the way they did) = The probability of the null hypothesis being true, given that the observations come out the way they did. Note that this is different from P(Data|Null) = P(The observations we made coming out the way they did | Null hypothesis is true) = The probability of the observations coming out the way they did, given the null hypothesis. For various choices of null hypothesis, the latter is easy to compute, but it’s the former that we really want, it’s the former that applies to the OP’s problem of differentiation between coincidence and causality, and that’s beyond our access. The whole backwards problem with misapplication of significance testing/p-values/etc. is in conflating these two. You can have a very low p-value with the null hypothesis extremely probable, or a very high p-value with the null hypothesis extremely improbable; there’s no simple connection between the p-value and the probabilities of the null/alternate hypotheses.
To those of you who say “Well, we can never rule out an underlying mechanism of chance and coincidence alone, but we can conclude it unlikely”, well, no, you can’t even do that, not on simple significance testing grounds. Think again about what your tests actually establish. Null hypothesis significance testing is really completely misguided for the problem in the OP, of distinguishing (even probabilistically) between coincidence and causality. Indeed, NHST is really deeply misguided for most purposes towards which it is applied. As put elegantly by Jacob Cohen,
[QUOTE=Jacob Cohen]
What’s wrong with NHST? Well, among many other things, it does not tell us what we want to know, and we so much want to know what we want to know that, out of desperation, we nevertheless believe that it does! What we want to know is “Given these data, what is the probability that H0 [the null hypothesis] is true?” But as most of us know, what it tells us is “Given that H0 is true, what is the probability of these (or more extreme) data?” These are not the same, as has been pointed out many times over the years**…**
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