Periodically, the Federal Trade Commission (FTC) monitors the pricing accuracy of electronic checkout scanners at stores to ensure consumers are charged the correct price at checkout. A study of over 100,000 items found that the probability that an item is priced incorrectly by the scanner is .03. (Price Check II: A Follow-Up Report on the Accuracy of Checkout Scanner Prices, Dec 16, 1998). Suppose the FTC randomly selects five items at a retail store and checks the accuracy of the scanner price of each. Let x represent the number of the five items that is priced incorrectly. What is the probability that exactly one of the five items is priced incorrectly by the а. scanner?

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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.