Sarah Biele is a salesperson. During the last year she has kept records of her sales for last 200 days. She knows that her daily sales constitute a random process. She wishes to know the probability distribution for daily sales. On forty occasions, she had no sales. There were twenty days on which she had 1 sale, sixty days on which she had 2 sales, and forty days each of 3 and 4 sales. Construct a probability distribution for Sarah Biele and verify that it is a legitimate distribution.

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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.