Based on information from the Statistical Forum, the population mean daily cost of operating a car is $ 18. A random sample of 26 students who own cars found a sample mean operating cost per day of $17.30. The population standard deviation is known and its value is $3.2. Test the alternative hypothesis that the population mean daily cost of operating a car for all students is lower than the national population average of $18. Use the 1% level of significance. 1) Specify the null and the alternative hypotheses. 2) Compute the Sample Test Statistic for this hypothesis test. 3) Find the p-value for this hypothesis test.

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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.