Conduct the hypothesis test and provide the test statistic and the critical value, and state the conclusion.
A person purchased a slot machine and tested it by playing it 1,133times. There are 10 different categories of outcomes, including no win, win jackpot, win with threebells, and so on. When testing the claim that the observed outcomes agree with the expected frequencies, the author obtained a test statistic of chi squaredχ2equals=11.557. Use a 0.10 significance level to test the claim that the actual outcomes agree with the expected frequencies. Does the slot machine appear to be functioning as expected?
Solution:
Here, we have to use Chi square test for goodness of fit.
Null hypothesis: H0: The slot machine appears to be functioning as expected.
Alternative hypothesis: Ha: The slot machine do not appears to be functioning as expected.
We are given
Number of categories = N = 10
Degrees of freedom = N – 1 = 9
Level of significance = α = 0.10
Critical Value = 14.68366
(by using Chi square table)
Test statistic = Chi square = 11.557
Test statistic value < Critical value
So, we do not reject the null hypothesis
P-value = 0.239451
(by using Chi square table)
P-value > α = 0.10
So, we do not reject the null hypothesis
There is sufficient evidence to conclude that the slot machine appears to be functioning as expected.
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