Question

Determining if an outcome is unusual

A) Probability less than 0.05
B) Probability greater than 0.05
C) Depends on sample size
D) Determined by median value

Answer 1

To determine if an outcome is unusual, we typically compare the probability of that outcome to a predetermined threshold value, called the significance level.

Step-by-step explanation:

In statistics, to determine if an outcome is unusual, we typically compare the probability of that outcome to a predetermined threshold value, called the significance level. In this case, the question asks whether the probability of winning the grand prize at the carnival game, which is given as 0.005, is very likely or very unlikely.

Using the information provided, the probability of winning the grand prize, 0.005, is less than the significance level of 0.05. This means that the outcome of winning the grand prize is considered very unlikely based on the usual conventions of hypothesis testing.

Therefore, the correct answer is B) Probability greater than 0.05, as a probability less than 0.05 is typically associated with an unusual outcome.