I was reading a post on Introduction to Maximum Likelihood and the following excerpt is provided:
The distinction between probability and likelihood is fundamentally important: Probability attaches to possible results; likelihood attaches to hypotheses.
So the question is, Is hypothesis a set of probabilities say 5 different probability models and the goal of likelihood is to determine which probability model best defines the data?
The following is a concrete example:
To illustrate how likelihood is attached to hypothesis. Say, I hypothesize that a magician has two-headed coin (which he really has but ONLY he knows), I am implying that the probability of heads is 1. Based on this hypothesis $$P(\textrm{Head|Two-headed-coin-hypothesis})=1$$ $$P(\textrm{Tail|Two-headed-coin-hypothesis})=0$$ Now when the magician performs $n$ trails and we see its heads each time then joint probability is $$P(\textrm{Trail 1|Two-headed-coin-hypothesis})*...*P(\textrm{Trial n|Two-headed-coin-hypothesis})$$ $$(1 *...*1)$$all evaluates to 1, thereby confirming hypothesis. An interesting outcome of this is that say if the magician had fair coin then any trial resulting in Tail would have included 0 in the joint probability above evaluating the whole expression to 0! therefore disproving the hypothesis.
However, when we do this for fair coin, say some random individual has fair coin but we dont know and we hypothesis it is indeed fair then $$P(\textrm{Head|Fair-coin-hypothesis})=0.5$$ $$P(\textrm{Tail|Fair-coin-hypothesis})=0.5$$ So we ask him to perform the trials $n$ times and getting only the results back. Now for say 2 trials the outcome shall be $0.254$ and for 3 trials its $0.125$ and for $n$ trials its $0.5^$, how does the final joint probability values confirms or disproves the hypothesis here? How do we compare 0.25 for 2 trials to our hypothesis, unlike the 2-headed-coin case where the joint probability value matched the hypothesis value, both being 1.