Use the Runs Test to Determine Whether the Given Sequence

question 53

Essay

Use the runs test to determine whether the given sequence is random. Use a significance level of 0.05. The sequence of numbers below represents the maximum temperature (in degrees
Fahrenheit)in July in one U.S. town for 30 consecutive years. Test the sequence for
randomness above and below the median. $$\begin{array} { r r r r r r r r r r } 94 & 96 & 97 & 99 & 95 & 90 & 97 & 98 & 100 & 100 \\92 & 95 & 98 & 99 & 102 & 97 & 97 & 101 & 99 & 100 \\98 & 95 & 93 & 99 & 101 & 99 & 101 & 100 & 99 & 103\end{array}$$

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Definitions:

Mathematical Model

A symbolic representation of real-world phenomena using variables, equations, and/or logical relationships to describe and predict behaviors or outcomes.

Stockout Cost

The cost associated with running out of stock, including lost sales, backorders, and potentially reduced customer satisfaction and loyalty.

Inventory Holding Cost

Expenses related to storing unsold goods, including warehousing, insurance, depreciation, and opportunity costs.

Subcontractingcost

The expense incurred when a business hires outside contractors to perform tasks that could be done internally or as part of a project.