A car insurance company classifies drivers aslow risk, medium risk and high risk, Of those insured by the company 60% are low risk, 60 are medium risk and 10% are hlah risk. A study by the company showed that in 1- year period 1%'of the low risk drivers had accidents 5% of the medium risk drivers had accidents and 9% of the high risk drivers had accidents. (a) If a driver is selected at random, what is the probability that the driver will have an accident? (b) If the driver had an accident, what is the probability that the driver is a high risk driver?

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Estimation

A new framework of data analysis where the new statistical methods are used for interpreting the results and analyzing the data is known as estimation in statistics.