Question

Bob claims to have gotten Heads 2 times out of 10 flips. Which of the following is most accurate?

	a.	At the 1% significance level - you reject the null hypothesis of a “fair” coin.
	b.	At the 5% significance level - you reject the null hypothesis of a “fair” coin.
	c.	At the 10% significance level - you reject the null hypothesis of a “fair” coin.
	d.	None of these are true.

Bob claims to have gotten Heads 9 times out of 10 flips. The marginal significance level (i.e. p-value) is closest to which of the following?

	a.	2.14%
	b.	5.28%
	c.	Not enough information provided to estimate the p-value
	d.	1.07%

Answer 1

Question 1

Test Statistics

P-value=2*P(Z<-1.897)=0.0578

P values is less than 0.10 hence we can reject the null hypothesis at 10% level of significance

Answer is

At the 10% significance level you can reject the null hypothesis of a "fair" coin

Question 2

Test Statistics

P value=2*P(Z>z)=2*P(Z>2.53)=0.0114

P value is closest to 1.07%

answer is 1.07%