Airfares Each year a company must send 3 officials to ameeting in China and 5 officials to a meeting in France. Airline ticket prices vary from time to time, but the com-pany purchases all tickets for a country at the same price. Past experience has shown that tickets to China have amean price of $1000, with a standard deviation of $150,while the mean airfare to France is $500, with a standarddeviation of $100.a) Define random variables and use them to express thetotal amount the company will have to spend to sendthese delegations to the two meetings.b) Find the mean and standard deviation of this total cost. c) Find the mean and standard deviation of the dif-ference in price of a ticket to China and a ticket to France.d) Do you need to make any assumptions in calculatingthese means? How about the standard deviations?

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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.