A roulette wheel has 38 potential outcomes when it is spun, 18 of which are red, 18 of which are black, the remaining two being green. The 38 outcomes are supposed to be equally likely. To make sure its roulette wheel is functioning properly, a casino spins it 3800 times, obtaining black 1707 times. Is this too few? That is, can the result be explained as the result of chance variation, or does it suggest that there is something wrong with the roulette wheel?

MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
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Chapter1: Starting With Matlab
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I think I understand this but I would like clarification to see if I have the correct result.

 

Use a significance level of 5%

 

. A roulette wheel has 38 potential outcomes when it is spun, 18 of which
are red, 18 of which are black, the remaining two being green. The 38 outcomes
are supposed to be equally likely. To make sure its roulette wheel is functioning
properly, a casino spins it 3800 times, obtaining black 1707 times. Is this too
few? That is, can the result be explained as the result of chance variation, or
does it suggest that there is something wrong with the roulette wheel? 

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