5) A study was conducted to estimate hospital costs for accident victims who wore seat belts. Twenty randomly selected cases have a distribution that appears to be bell-shaped with a mean of $9004 and a standard deviation of $5629 (based on data from the U.S. department of transportation). a) Find a 95% confidence interval estimate of the mean of all such costs. b) Interpret the result, and explain its meaning.

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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.