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Lecture 7
Probability and Hypothesis Testing
Topics
Probability
Hypothesis Testing
Single-Sample Research and
Inferential Statistics
Proposal
I will give you odds of 1:1 (evens) that
you will get a 6 in 3 throws of a dice
Do you want to play?
This is all about the probability of
related or connected events
Proposal
What about my bet is it fair?
Advanced: if you were to toss a coin
100 times would the occurrence of
the sequence HHH be as likely as
HTH?
.HHTHTTHHTTHTHTHHTHHHT
Nonparametric test
A statistical test that does not involve
the use of any population parameters
and are not needed
The underlying distribution does not have
to be normal
Summary
Example - Roulette
Example - Blackjack
Blackjack is the
cheapest casino
game with a
house edge of
only around 1%
compared to
2.7% for roulette
Example - birthdays
What are the chances that 2 people
in this room have the same
birthday?