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Roulette An American roulette wheel has 18red slots among its 38slots. To test if a particular roulette wheel is fair, you spin the wheel 50times and the ball lands in a red slot 31times. The resulting P-value is0.0384.

a. Interpret the P-value.

b. What conclusion would you make at the=0.05 level?

c. The casino manager uses your data to produce a99% confidence interval for p and gets(0.44,0.80). He says that this interval provides convincing evidence that the wheel is fair. How do you respond

Short Answer

Expert verified

Part (a)There is a0.0384probability that get 31successes among 50 trials or more extreme, when the roulette wheel is fair.

Part (b)There is enough convincing proof that the American roulette wheel is not fair.

Part (c) Researcher is correct

Step by step solution

01

Part (a):Given information

P=0.0384

Given claim: Roulette wheel is fair and therefore the ball lends in a read slot 18 times out of38on average. }

02

Part (b) Step 2:Explaination

The claim is either the null hypothesis or the alternative hypothesis. The null hypotheses statement is that the population mean is equal to the value given in the claim. If the null hypothesis is the claim then the alternative hypothesis statement is the opposite of null hypothesis.

H0:p=1838=0.4737

H1:p0.4737

The P-value is the probability of getting the value of the test statistic or a value more extreme, when the null hypothesis is true.

There is a 0.0384 probability that get31successes among 50 trials or more extreme, when the roulette wheel is fair.

03

Part (b) Step 1:Given information

=0.05

n=50

x=31

Given claim is that the proportion is18out of every38

04

Part (b):Step 2:Calculation

The claim is either the null hypothesis or the alternative hypothesis. The null hypotheses statement is that the population mean is equal to the value given in the claim. If the null hypothesis is the claim then the alternative hypothesis statement is the opposite of null hypothesis.

H0:p=1838=0.4737

H1:p0.4737

Conditions

The three conditions are: Random, independent, Normal (large counts)

Random: Satisfied, because it is safe to assume that the different spins of the wheel are random.

Independent: satisfied, the reason is that the sample of 50spins is less than 10%of the population of all spins (assuming that there are more than 500spins with the roulette wheel).

Normal: Satisfied, because

np0=50(0.4737)=23.685andn1-p0=50(1-0.4737)=50(0.5263)=26.315are both at least10

Since all condition are satisfied, it is suitable to use a hypothesis test for the population proportion P

Hypothesis test

p^=xn

=3150

=0.62

The test- statistic is

z=p^-p0p01-p0n

=0.62-0.47370.4737(1-0.4737)50=2.07

The P-value is the probability of getting the value of the test statistic, or a value more extreme, when the null hypothesis is true. Find the P-value using the normal probability table

P=P(Z<-2.07orZ>2.07)

=2P(Z<-2.07)

=2(0.0192)

=0.0384

If the P-value is lesser than the significance level then reject the null hypothesis:

P<0.05RejectH0

There is enough convincing proof that the American roulette wheel is not fair.

05

Part (c) Step 1:Given information

99%confidence level:(0.44,0.80)

06

Part (c) Step 2:Explaination

p=1838

=0.4737

The Researcher is correct.

A 99%confidence interval associates with a significance test at the =0.01 level.

A 95%confidence interval associates with a significance test at the =0.05level.

The significance test at the =0.05level and therefore the associating 95%confidence interval, would lead to the opposite conclusion. Thus the there is not enough convincing evidence.

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