My textbook is talking about how estimating the proportion of Democrats in the population reduces to estimating the bias of a coin, which I wasn't seeing. Here is the paragraph I was reading:
Consider the problem of estimating the proportion $p$ of Democrats in the US population, by taking a small random sample. We can model this as the problem of estimating the bias of a coin above, where each coin toss corresponds to a person that we select randomly from the entire population. And the coin tosses are independent: we are assuming here that the sampling is done “with replacement”; i.e., we select each person in the sample from the entire population, including those we have already picked. So there is a small chance that we will pick the same person twice.
I am not seeing how the problem of estimating the proportion of Democrats is equivalent to estimating the bias of a coin. There are 2 things I am confused with here:
- When we have a bunch of coin tosses from the same coin, each toss has an equal propensity to be heads; but people in a population don't have an equal propensity to be Democrat. And modelling this example as estimating the bias of a coin assumes that the probability of every person being a Democrat is the same, it seems- are we treating the proportion of people which are Democrat as an equivalent notion to the propensity of a particular person to be Democrat?
- How is flipping a coin the same thing as sampling a person from the population? I see that while we could classify things into 2 possibilities in both cases, with Democrat and non-Democrat corresponding to heads and tails, there are an amount of possible outcomes equal to the amount of people in the population for sampling a person, making me feel that this is somehow different from when there are only 2 outcomes from flipping a coin.
I would be very grateful if anyone could explain how these situations are similar in a way which resolves my confusions.
This is a really good question. Here is one way to think about it.
If you knew the actual proportion $p$ of Democrats in the population then you could design an unfair coin such that when you flipped it the probability of heads was $p$.
Now suppose you forget how you knew $p$ and used it to build the coin. There are two ways you might try to recover $p$. One would be to sample the population and use the fraction of Democrats as an estimate of $p$. The larger the sample the better the estimate.
Or you could flip the coin repeatedly and use the fraction of heads to estimate $p$. The more flips, the better the estimate.
Perhaps this helps.