A random-number generator is supposed to produce a

Chapter 10, Problem 10.1.3

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QUESTION:

A random-number generator is supposed to produce a sequence of 0s and 1s with each value being equally likely to be a 0 or a 1 and with all values being independent. In an examination of the random-number generator, a sequence of 50,000 values is obtained of which 25,264 are 0s.

(a) Formulate a set of hypotheses to test whether there is any evidence that the random-number generator is producing 0s and 1s with unequal probabilities, and calculate the corresponding p-value.

(b) Compute a two-sided 99% confidence interval for the probability p that a value produced by the random-number generator is a 0.

(c) If a two-sided 99% confidence interval for this probability is required with a total length no larger than 0.005, how many additional values need to be investigated?

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QUESTION:

A random-number generator is supposed to produce a sequence of 0s and 1s with each value being equally likely to be a 0 or a 1 and with all values being independent. In an examination of the random-number generator, a sequence of 50,000 values is obtained of which 25,264 are 0s.

(a) Formulate a set of hypotheses to test whether there is any evidence that the random-number generator is producing 0s and 1s with unequal probabilities, and calculate the corresponding p-value.

(b) Compute a two-sided 99% confidence interval for the probability p that a value produced by the random-number generator is a 0.

(c) If a two-sided 99% confidence interval for this probability is required with a total length no larger than 0.005, how many additional values need to be investigated?

ANSWER:

Step 1 of 6

(a) Formulate a set of hypotheses to test whether there is any evidence that the random-number generator is producing 0s and 1s with unequal probabilities, and calculate the corresponding p-value. 

Let p be the probability that the random number generator produces a zero, 

Thus the null hypothesis stating that the random number generator produces equal probabilities of 1’s and 0’s is:

\(H_{0}=p=0.5\)

The hypothesis which states that the random number generator produces unequal probabilities of 1’s and 0’s is:

\(H_A:\ p\ne0.5\)

We know random variable x = 25264, and sample size n = 50,000

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