Suppose that X~N(5000,400). You're considering taking a simple random sample and calculating the average of your sample. The Central Limit Theorem tells us that the distribution of all possible sample averages is Normally distributed with a mean of 5000, and a standard deviation of 400/sqrt(100) = 400/10 = 40. What is the probability that you draw a sample with an average greater than 4950?

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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.