A Lottery Is Conducted That Involves the Random Selection of Numbers

question 17

Essay

A lottery is conducted that involves the random selection of numbers from 0 to 4. To make sure that the lottery is fair, a sample of 250 was taken. The following results were obtained:
$\begin{array}{cc}\text { Value }&\text { Frequency }\\0 & 40 \\1 & 45 \\2 & 55 \\3 & 60 \\4 & 50\end{array}$
a. State the null and alternative hypotheses to be tested.
b. Compute the test statistic.
c. The null hypothesis is to be tested at the 5% level of significance. Determine the critical value from the table.
d. What do you conclude about the fairness of this lottery?

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Definitions:

Total Output

The total quantity of goods and services produced within an economy over a specific period of time.

Downward-Sloping Demand

A market condition where demand for a product decreases as its price increases, illustrating the inverse relationship between price and demand.

Pure Monopolist

A single seller in a market that has complete control over the supply of a product and where no close substitutes exist.