Use the Runs Test to Determine Whether the Given Sequence $0.05$

question 75

Multiple Choice

Use the runs test to determine whether the given sequence is random. Use a significance level of $0.05$ . The outcomes (odd number or even number) of a roulette wheel are shown below. Test for randomness of odd $( O )$ and even (E) numbers. Use a significance level of $0.05$ .
$\begin{array}{cccccccccccc}\mathrm{O} & \mathrm{E} & O & \mathrm{E} & \mathrm{O} & \mathrm{E} & \mathrm{O} & \mathrm{E} & \mathrm{E} & \mathrm{O} & \mathrm{E} & \mathrm{E} \\\mathrm{E} & \mathrm{E} & \mathrm{O} & \mathrm{E} & \mathrm{O} & \mathrm{O} & \mathrm{E} & \mathrm{O} & \mathrm{E} & \mathrm{E} & \mathrm{O} & \mathrm{E}\end{array}$

What is the value of $G$ , the number of runs?

• A) 10
• B) 14
• C) 17
• D) 18

---

Definitions:

Consumer Surplus

The contrast between the aggregate amount buyers are willing to shell out for a good or service and the total they actually do.

Total Surplus

The combined benefit that both consumers and producers receive from a transaction, comprising consumer and producer surplus.

Consumer Surplus

The difference between the total amount that consumers are willing and able to pay for a good or service (indicated by the demand curve) and the total amount that they actually do pay (i.e., the market price).

Producer Surplus

The difference between what producers are willing to accept for a good or service versus what they actually receive, often reflecting gains from trade.