According to some reports, 58% of U.S. households have a subscription to an on-demand video service. Marketing researchers believe the proportion is even higher in New Jersey and decided to conduct a study. After contacting a random sample of 250 households in the state of New Jersey, researchers found that 156 of these households did have a subscription to an on- demand video service. a. Construct a 95% confidence interval to estimate the proportion of households in New Jersey that have a subscription to an on-demand video service. b. Based on your confidence interval, is there reason to suspect that the proportion of New Jersey households that have a subscription to an on-demand video service is not equal to 0.58? Explain.

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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.