A tire manufacturer warranties its tires to last at least 20195 miles or “you get a new set of tires.” In its experience, a set of these tires lasts on average  26195 miles with standard deviation 5130 miles. Assume that the wear is normally distributed. The manufacturer profits Rs. 200 on each set sold, and replacing a set costs the manufacturer Rs. 400. a) What is the probability that a set of tires wears out before 20195 miles? b) What is the probability that a set of tires wears out before 24195 miles and after 20195 miles? c) What is the cutoff value in terms of miles of the top 65% wearing out tires?

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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.