Test the Following Sequence for Randomness

question 5

Multiple Choice

Test the following sequence for randomness. B A A A A B A B B B B A A A
You may use the following abbreviated table of critical values for runs (at = .05) .Reject the null
Hypothesis if the number of runs is less than or equal to the smaller value or greater than or equal to the
Larger value.

• A)Do not reject because the test value 6 is not between the critical values 3 and 11
• B)Do not reject because the test value 5 is between the critical values 3 and 12
• C)Do not reject because the test value 6 is between the critical values 3 and 12
• D)Reject because the test value 5 is not between the critical values 3 and 11

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Definitions:

Variation

The measure of the spread or dispersion of a set of data points or values in a dataset.

Random Variable

A variable whose possible values are numerical outcomes of a random phenomenon.

Stock Investment

The purchase of shares in a company with the expectation of earning dividends or selling the shares at a higher price in the future.

Variability Of Return

Denotes the volatility in the profits or gains from investments over a period.