Since 1961, parcels of land that may contain oil have been placed in a lottery, with the

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Since 1961, parcels of land that may contain oil have been placed in a lottery, with the winner receiving leasing rights (at $1 per acre per year) for a period of 10 years. United States citizens 21 years or older are eligible and are entitled to one entry per lottery by paying a $10 filing fee to the Bureau of Land Management (see The Federal Oil & Gas Leasing System, Federal Resource Registry, 1993). For several months in 1980, however, the lottery was suspended to investigate a player who won three parcels of land in 1 month. The numbers of entries for the three lotteries were 1,836, 1,365, and 495, respectively. An Interior Department audit stated that “federal workers did a poor job of shaking the drum before the drawing.” Based on your knowledge of probability and rare events, would you make the same inference as that made by the auditor?

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Statistics For Engineering And The Sciences

ISBN: 9781498728850

6th Edition

Authors: William M. Mendenhall, Terry L. Sincich

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