Use the Runs Test to Determine Whether the Given Sequence

question 1

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. $$\begin{array} { | l l l l l l l l l l l l | } \hline \mathrm { O } & \mathrm { E } & \mathrm { O } & \mathrm { E } & \mathrm { O } & \mathrm { E } & \mathrm { O } & \mathrm { E } & \mathrm { E } & \mathrm { O } & \mathrm { E } & \mathrm { E } \\\mathrm { E } & \mathrm { E } & \mathrm { O } & \mathrm { E } & \mathrm { O } & \mathrm { O } & \mathrm { E } & \mathrm { O } & \mathrm { E } & \mathrm { E } & \mathrm { O } & \mathrm { E } \\\hline\end{array}$$ What is the value of G, the number of runs?

• A) 10
• B) 18
• C) 17
• D) 14

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Definitions:

Sales Revenue

The total amount of money generated from sales of goods or services before any expenses are subtracted.

Operating Leverage

A measure of how revenue growth translates into growth in operational income, highlighting the impact of fixed costs on profits.

Variable Costs

Variable Costs are expenses that vary directly with the level of production or business activity.

Sensitivity Analysis

A technique used to determine how different values of an independent variable affect a particular dependent variable under a given set of assumptions.