Chi-Square and Analysis of Variance

A state lottery commission claims that for a new lottery game, there is a 10 percent chance of getting a $1 prize, a 5 percent chance of $100, and an 85 percent chance of getting nothing. To test whether this claim is correct, a winner from the last lottery went out and bought 1,000 tickets for the new lottery. He had 87 one-dollar prizes, 48 hundred-dollar prizes, and 865 worthless tickets. At the 0.05 signifi cance level, is the state’s claim reasonable?

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