Randomness incorporates many different concepts. Referring to Applied Example
14. 12:
a. What aspect of randomness will be tested using the chi-square test mentioned in part (i) of rule (c)? Describe how it will be used.
b. What aspect of randomness will be tested using the runs test mentioned in part (ii) of rule (c)? Describe how it will be used.
c. What aspect of randomness will be tested using the correlation analysis mentioned in part (iii) of rule (c)? Describe how it will be used.
d. These gaming rules are written using the phrase “99% confidence level” instead of “0.01 level of significance” as hypothesis tests typically use. Explain why this seems appropriate.