Answer
The coin favors heads.
Work Step by Step
We first find the value of z using a ti-84 calculator. To do this, press "Stat," and then select "1-PropZTest." Then, plug in .5 for $p_0,$ 7 for x, and 8 for n. Then, select $\ne p_0,$ and press enter. Doing this, we see that $z=2.12$.
Using a table of z-scores, we find:
$P=.03$
This is less than .05, so we reject the hypothesis, meaning that the coin may favor heads.
