The desired percentage of SiO2 in a certain type of aluminous cement is 5.5. To test whether the true average percentage is 5.5 for a particular production facility, 16 independently obtained samples are analyzed. Suppose that the percentage of SiO2 in a sample is normally distributed with σ = .3. Assume that the sample mean is 5.25. (a) Does this indicate that the true average percentage differs from 5.5? Carry out a test at α = .01. (b) If the true average percentage is µ = 5.6, what is the probability of type II error?

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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.