An inspector inspects large truckloads of potatoes to determine the proportion with blemishes prior to using the potatoes to make potato chips. She intends to compute a 95% confidence interval for this proportion. To do so, she selects a simple random sample of 90 potatoes, and finds 12 with blemishes. The 95% confidence interval is (0.063, 0.204). What is the correct interpretation for this confidence interval? The inspector can be 95% confident that the proportion of potatoes with blemishes is 0.133. In 95% of samples taken, between 6.3% and 20.4% of the sampled potatoes would have blemishes. The inspector can be 95% confident that the interval from 0.063 to 0.204 captures the proportion of all potatoes on the truck with blemishes. There is a 5% probability that the proportion of all potatoes that have blemishes is either below 0.063 or above 0.204.

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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.