Answer to Question #150965 in Statistics and Probability for Hay

Question

Question 1
(a). A casino gambler keeps on inserting fifty Ghana
pesewa coins into a vending machine with the hope of
winning ten Ghana cedis after each try. After five tries,
he has not won anything. Nevertheless, he decides to
continue playing the game.
(i). Indicate whether the decision taken is right or wrong,
giving reasons for your answer.
(ii). Base on your decision taken in (i) above, explain the
probability concept that the gambler employed in
playing the game.
(b). In a coin tossing experiment, two error decisions are
likely to occur. Briefly discuss the implications of
making each of the two errors.

Answer 1

a)i) The decision made by the gambler is right. This is because as he continues to play, he increases the chances of him winning.

ii) Based on the decision in i) above, the gambler applies the concept of law of large numbers. As the number of trials increases the chances of winning increases.

b) in a coin tossing experiment two error decisions are likely to occur. type I and type II errors.

type I error is where we reject a true null hypothesis and type II error is where we fail to reject a false null hypothesis.