UPS currently believes that it achieves a 96 % on-time performance for its customers. A random sample of 200 customer shipment studies has shown that 188 of them have met the on-time delivery promise. What is the probability that a random sample of 200 customer shipments would contain 188 or fewer on-time deliveries if the true population of on-time deliveries is 96%? Would you be surprised if the random sample of 200 customer shipments had 197 on-times deliveries? Support your answer with a probability calculation. Suppose the random sample of 200 customer shipments revealed that 178 were on time. Would such a finding cause you to question UPS’s claim that its on-time performance is 96%? Support your answer with a probability calculation.

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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.