Ethanol Railroad Tariffs. An ethanol railroad tariff is a fee charged for shipments of ethanol on public railroads. The Agricultural 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 railroadcar shipments of ethanol will be within $100 of the mean tariff rate of all railroadcar shipments of ethanol. Interpret your answer in terms of sampling error.

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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.