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For every football game there is a team that is expected to win by a certain number of points. In betting​ parlance, this is called the spread. If point spreads are​ accurate, we would expect about half of all games played to result in the favored team winning​ (beating the​ spread) and about half of all games to result in the team favored to not beat the spread. The accompanying data represent the results of 45 randomly selected games where a 0 indicates the favored team did not beat the spread and a 1 indicates the favored team beat the spread. Do the data suggest that sport books establish accurate​ spreads?

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Answer and Explanation:

From the question,

Null hypothesis H0=0.5

Alternative hypothesis Ha≠0.5

Given that test statistic z = <p-p/√p(1-p)/n

<p is the sample proportion of favored teams= x/n = 25/45= 0.5556

p is the population proportion =0.50

n= population size/ number of games = 45

Z= 0.5556-0.50/√0.50(1-0.50)/45

= 0.5556-0.50/√0.50(0.50)/45

= 0.75

Two tailed test P-value from table given Z value 0.75

= 0.453

The p value is greater than level of significance 5%, 10% and so we don't reject null hypothesis. Also level of significance is not specified. Therefore option C is correct

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