Question
A slot machine is a gambling device where a person inserts a coin and pulls a handle (or presses a button) to generate a random
A slot machine is a gambling device where a person inserts a coin and pulls a handle (or presses a button) to generate a random payoff (which could be zero or a positive amount of money). Gambling regulations require slot machines to post the odds of winning. Suppose a particular slot machine advertises that it will pay out some amount of money 20% of the time. Sixteen people are surveyed at random who played the machine once, and only one of them received a payoff. Is there evidence to suggest that the machine is unfair (i.e. not paying out as often as advertised)? Complete any necessary calculations and explain completely.
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