Digital video recorders allow us to skip commercials when watching TV. Some allow advertisers to see which ads are watched. A study used this technology in a sample of 2504 homes in a city. XYZ monitored viewer’s reactions to ABC product ad that featured the band Roq. The ad won critical acclaim, but XYZ found that only 41% of households saw the ad. An analysis indicates that an ad has to be viewed by 40% or more households to be cost effective. Based on this test, should the local sponsor run this ad?

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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.