160 heads and 240 tails resulted from 400 tosses of a coin. Find a 95% confidence interval for the probability of a head. Does this appear to be a fair coin?
[Hint p = $$\frac{1}{2}$$, q = $$\frac{1}{2}$$, n = 400
Expected frequency = np = 200
Standard error = $$\sqrt {npq} $$ = 10
Actual difference = 200 - 160 = 40
Difference is greater than 3 times standard error coin is unfair.]
A. Can be said to be fair
B. Can be or cannot be said to be fair
C. Cannot be said to be fair
D. None of the above
Answer: Option C
This Question Belongs to Management >> Business Statistics
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