An online bookseller is considering selling an e-reader but will do so only if they have evidence that the proportion of customers who will likely purchase one is more than 0.4. Of a survey of 25 customers, 8 of them stated that they would likely purchase an e-reader. What should the bookseller do? Use a 5% significance level.

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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.