Use a 005 Level of Significance to Test the Claim That the That

question 77

Essay

Use a 0.05 level of significance to test the claim that the sequence of computer -generated
numbers is random. Test for randomness above and below the mean. $$8,7,5,7,3,9,1,8,0,4,3,8,4,6,2,3,9,7,5$$

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Definitions:

Substitution Effect

The change in consumption that results from a change in the relative price of goods, leading consumers to substitute away from higher-priced goods.

Income Effect

The income effect describes the change in an individual's or economy's income and how that change will affect the quantity demanded of a good or service.

Normal Good

A type of good for which demand increases as the income of the consumer increases, holding all else constant.

Wealth Effect

The change in spending and consumption patterns by individuals or households due to changes in their real or perceived wealth.