Question

Brayden tosses a coin 500 times. Of those 500 times, he observes heads a total of 416 times. Calculations show that the probability of this occurring by chance is less than 0.01, assuming the coin is fair. Determine the meaning of the significance level.

Answer 1

Answer: The probability of this ocurring by chance is less than 0.01.

The meaning of the significance level is that it tells that there is difference of 1% level when there is no actual difference.

Step-by-step explanation:

Since we have given that

Number of times a coin tossed = 500

Number of times head occurs = 416

So, our Z-score would be

$Z_\alpha =\dfrac{416}{500}=0.832$

So, At significance level of 0.01, p-value of Z-score is .202704.

and p-value < 0.01, i.e. 0.202704<0.832.

Hence, the probability of this ocurring by chance is less than 0.01.

The meaning of the significance level is that it tells that there is difference of 1% level when there is no actual difference.