The incumbent governor was reñelected in 150 of 260 gubernatorial elections (in the US between 1960 and 88). Let p denote the probability that a govenor is re-elected. (a) Construct a 95% confidence interval based on the data above. (b) Test the hypothesis that p = 1=2 at a 5% level of signiÖcance

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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.