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:

Price

The price required to be paid for a product or service.

Profit

The financial gain achieved when the amount of revenue gained from a business activity exceeds the expenses, costs, and taxes needed to sustain the activity.

Production Function

Describes the relationship between inputs (like labor and capital) and the maximum output that can be produced with these inputs.

Proportions

The relationship between quantities that defines how much of one thing is present relative to another.