Experience has shown that the value of orders placed by customers of Handy Glass Pty is normally distributed, with an average order value (μ) of R10 200, and a standard deviation (σ) of R1 755. A sample of 85 orders is randomly selected. Determine the standard error for this sample. (3) What is the probability that the mean value of the orders in the sample is less than R10 225? Interpret your answer. (7)

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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.