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An Edge in Roulette? Of the 38numbers on an American roulette wheel, 18are red, 18are black, and 2are green. If the wheel is balanced, the probability of the ball landing on red is 1838=0.474. A gambler has been studying a roulette wheel. If the wheel is out of balance, he can improve his odds of winning. The gambler observes 200spins of the wheel and finds that the ball lands on red 93times, At the10% significance level, do the data provide sufficient evidence to conclude that the ball is not landing on red the correct percentage of the time for a balanced wheel?

Short Answer

Expert verified

At the 5%level, the test results are not statistically significant.

As a result, the data is insufficient to infer that the ball is not falling on red at the correct percentage of the time for a balanced wheel.

Step by step solution

01

Given information

The significant level is 10%

The total number of spins is n=200

The probability of the ball landing on red is p0=0.474
x=93

02

Explanation

Form the given values

Calculate the value of np0

np0=(200)(0.474)

=94.8

Calculate the value of n1-p0

n1-p0=(200)(1-0.474)

=105.2

Both the values are greater than 5.

So one proportion z-test is appropriate to use.

The null hypothesis is

H0:p0=0.474

The alternate hypothesis is

H0:p0≠0.474

Calculate the sample proportion

p^=xn

p^=93200

=0.465

Write the expression for z

z=p^-p0p01-p0n

The zvalue is calculated as

z=0.465-0.4740.474(1-0.474)200

=-0.0090.035

=-0.255

α=0.10

The tail is two-tailed

When α=0.05, the critical value from the standard table is

z0.05=±1.645

The test statistic is within acceptable bounds. As a result, the hypothesis H0is not ruled out.

At the5% level, the test results are not statistically significant.

As a result, the data is insufficient to infer that the ball is not falling on red at the correct percentage of the time for a balanced wheel.

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