Gamma Star stipulates that a power supply unit used in its scanner system has a time of failure thought to be exponentially distributed with a mean of 10000 hours. It offered a warranty return for a power supply that fails to work after 5500 hours. What is the probability that the power supply will fail at 5500 hours or less? Suppose Gamma star sold 1,000,000 scanners with this power supply. What will be, approximately, the total returns due to failure at 5500 hours or less?

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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.