I need help in question 4.15 of the question Bank. How did we get the null hypothesis? From where did the size of the test come? How did we conclude that it is not significant at even 10% level? Why did we count only upto 5 in the second part of the question? Hoping for an early response. Exams ahead! Thank you
We're testing whether the person can do better than chance, ie 1 in 5 probability of getting it right via guessing. Size is the same as level which is the same as the p-value. Since the probability is greater than 10% hence can't reject it at the 10% level. We counted up to 4 (0, 1, 2, 3, 4) not 5. We did this to find out the number of cards you could get right with 95% probability by guessing.
