CAIE S2 2015 June — Question 2

Exam BoardCAIE
ModuleS2 (Statistics 2)
Year2015
SessionJune
TopicHypothesis test of binomial distributions
TypeCalculate Type I error probability

2 Marie claims that she can predict the winning horse at the local races. There are 8 horses in each race. Nadine thinks that Marie is just guessing, so she proposes a test. She asks Marie to predict the winners of the next 10 races and, if she is correct in 3 or more races, Nadine will accept Marie's claim.
  1. State suitable null and alternative hypotheses.
  2. Calculate the probability of a Type I error.
  3. State the significance level of the test.