Agnes Hammer is a senior majoring in management science. She has been interviewing with several companies for a job when she graduates, and she is curious about what starting salary offers she might receive. There are 140 seniors in the graduating class for her major, and more than half have received job offers. She asked 12 of her classmates at random what their annual starting salary offers were, and she received the following responses: $28,500 $35,500 32,600 36,000 34,000 25,700 27,500 29,000 24,600 31,500 34,500 26,800 Assume that starting salaries are normally distributed. Compute the mean and standard deviation for these data and determine the probability that Agnes will receive a salary offer of less than $27,000.

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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.