Question

Suppose that in one night in a casino, N=1,000 bets are placed on a slot machine. Each bet is $1 and the possible payout per bet is $0, $1, $2 or $5. The following table represents the outcomes of all N=1,000 bets.

N	Payout
600	$0
200	$1
100	$2
100	$5

c)

Compute the average winnings per $1 bet (x-bar).

d)

Compute the sample standard deviation for the 1,000 bets.

e)

Compute a 95% Confidence Interval forμ, the expected winnings per $1bet.

f)

Conduct a two-sided hypothesis test (α=0.05) for HO: μ=0. State the relevant p-value and your decision whether to reject or not reject HO.

Answer 1