Use the Runs Test to Determine Whether the Given Sequence $\begin{array} { l } \text {A A D A A A D A A D }\\ \text {A D A A A D A A A A }\\ \text {A A D D A A A A D A }\\\end{array}$

question 134

Essay

Use the runs test to determine whether the given sequence is random. Use a significance level
of 0.05. A sample of 30 clock radios is selected in sequence from an assembly line. Each
radio is examined and judged to be acceptable (A)or defective (D). The results are shown
below. Test for randomness. $\begin{array} { l } \text {A A D A A A D A A D }\\ \text {A D A A A D A A A A }\\ \text {A A D D A A A A D A }\\\end{array}$

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Definitions:

Precious Metals

Metallic elements of high economic value, such as gold, silver, and platinum, often used as investment or for industrial purposes.

NAV

Net Asset Value, representing the per-share/unit price of a fund on a specific date or time, calculated by deducting liabilities from assets and dividing by the number of shares outstanding.

Load

A fee or charge assessed when buying or selling shares in a mutual fund, which can be front-end (when buying) or back-end (when selling).

Asset Allocation Funds

Mutual funds that invest in a mixed proportion of assets (e.g., stocks, bonds, real estate) to diversify risk.