An ethanol railroad tariffis a fee  charge for shipments of  ethanol on public railroads. The Agriculture Marketing Service publishes tariff rates for railroad-car shipments of ethanol in the Biofuel Transportation Database. Assuming that the standard deviation of such tariff rates is $1150, determine the probability that the mean tariff rate of 500 randomly selected railroad- car shipments of ethanol will be within $100 of the mean tariff rate of all railroad-car shipments of ethanol.

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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.