Allegiant Airlines charges a mean base fare of $89. In addition, the airline charges for making a reservation on its website, checking bags, and inflight beverages. These additionalcharges average $39 per passenger (Bloomberg Businessweek, October 8–14, 2012). Suppose a random sample of 60 passengers is taken to determine the total cost of their flight onAllegiant Airlines. The population standard deviation of total flight cost is known to be $40.a. What is the population mean cost per flight?b. What is the probability the sample mean will be within $10 of the population meancost per flight?c. What is the probability the sample mean will be within $5 of the population meancost per flight?

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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.