- X~B(n, p) means that a random variable (event) X follows a binomial distribution with:
- n - number of trials
- p - probability of success
- P(X=x) = (nCr) x (p of success)no. of successes x (p of fails)no. of fails)
- Some calculators do not have an option to set a lower and upper value so you have to write the inequality using < or =
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- Hypothesis testing is usually used to check whether an outcome had a probability of less than 5%
- If P(X..) < 0.05 then we reject our null hypothesis because we found an outlier which means our assumption of p is incorrect
- If P(X..) > 0.05 then we do not reject our null hypothesis as the outcome is not that much of an outlier
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- Critical values are any values which would lead to a probability less than 0.05 which would lead to the null hypothesis being rejected
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- For two-tailed tests, half the significance level
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