A slot machine at a casino is designed to pay out of the games played. During a recent trip to the casino, Estelle played 8 games on a slot machine, but she only won once. She complained to the casino manager, who then explained to her the p -value of her experience. What p -value did the casino manager tell Estelle? Round your answer to three decimal places.
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In this context, the p -value is the probability that a casino visitor would win 1 or fewer games on the slot machine in 8 games. This can be computed with the binomial distribution , assuming the slot machines are working as intended:
p = ( 0 8 ) ( 5 1 ) 0 ( 5 4 ) 8 + ( 1 8 ) ( 5 1 ) 1 ( 5 4 ) 7 ≈ 0 . 5 0 3 .
If the slot machine is working, then any customer would essentially have a 2 1 chance to get the same payout in 8 games. Estelle can't really prove that the slot machine is broken!