Since 1961, parcels of land that may contain oil have been placed in a lottery, with the
Question:
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?
Step by Step Answer:
Statistics For Engineering And The Sciences
ISBN: 9781498728850
6th Edition
Authors: William M. Mendenhall, Terry L. Sincich