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Chi-Square Hypothesis Test for Playing a Slot Machine

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A person purchased a slot machine and tested it by playing it 1,245 times. There are 10 different categories of outcomes, including no win, win jackpot, win with three balls, and so on. When testing the claim that the observed outcomes agree with the expected frequencies, the author obtained a test statistic of xsquared=10.413. Use a 0.10 significance level to test the claim that the actual outcomes agree with the frequencies. Does the slot machine appear to be functioning?

Find:
Test statistic
Critical value
P-value
State conclusion
Ho= do not reject or reject claim
There is not or is evidence to support claim: 'The slot machine does not or appears functioning'

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Solution Summary

The solution provides step-by-step method of performing a chi-square hypothesis test: formulation of null and alternate hypotheses, selection of significance level, calculation of expected frequencies, and calculation of chi-square, calculation of degrees of freedom, decision rule and interpretation of results. It is formatted in an attached Word document.

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  • MSc, Osmania University
  • MSc, Indian Institute of Technology - Roorkee (I.I.T.-ROORKEE)
  • BSc, Banaras Hindu University
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