A machine produces metal rods used in an automobile suspension system. A random sample of 15 rods is selected, and the diameter is measured. The resulting data (in millimeters) are as follows: 8.24 8.25 8.20 8.23 8.24 8.21 8.26 8.26 8.20 8.25 8.23 8.23 8.19 8.28 8.24 a) Calculate a 95% two-sided confidence interval on mean rod diameter. b) Compute a 95% prediction interval on the diameter of the next rod tested. Compare the length of the prediction interval with the length of the 95% Cl on the population mean.

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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.