Fairfield Homes is developing two parcels near Pigeon Fork, Tennessee. In order to test different advertising approaches, it uses different media to reach potential buyers. The mean annual family income for 18 people making inquiries at the first development is $162,000, with a standard deviation of $40,000. A corresponding sample of 29 people at the second development had a mean of $181,000, with a standard deviation of $29,000. Assume the population standard deviations are the same. At the 0.01 significance level, can Fairfield conclude that the population means are different? At the 0.01 significance level, can Fairfield conclude that the population means are different?

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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.