A number of people have stressed independence of the coin tosses. I'm not sure why. Can someone explain?
Because if the coin tosses are not independent -- of course, if they're not independent, they're not really coin tosses -- then one can improve on the straight-up probability calculations by doing context-dependent guessing.
As a simple if extreme example, if I know that the next event will always be the opposite of this one, the optimal strategy is to alternate guessing heads and tail. Not, I hasten to point out, to choose randomly between the two, but to alternate. No randomness is involved.
The expectation of the sum of a bunch of random variables is equal to the sum of the expectations of the random variables, whether the random variables are independent or not.
But if the random variables are not independent, then the expectations are not independent either, and one can generally do better than "chance" with a strategy that takes advantage of the non-independence of the expectations.
For example, we've been discussing both coin flips and sex of children as though they were random. I believe that is true for coin flips; I do not believe that to be true for children. Specifically, I think there is some evidence that not all men produce equal numbers of X- and Y- chromosome sperm, which in turn implies a positive correlation between the sex of siblings. I pawed through some PubMed cites and couldn't find anything to confirm this -- so either take my word for it, or else treat this as a hypothetical.
But if this is the case, I could actually predict the sex of a child with better than 50% accuracy if that child has an older sibling. Simply predict that the younger child will have the same sex as the elder.
And, of course, this reduces to an absurdity if you walk into my office and ask me to predict the sex of your identical twin sibling. Despite the fact that twins are, in general, distributed uniformly across the sexes, I can tell you what your identical twin's sex is with little uncertainty.