In response to concerns about nutritional contents of fast foods, McDonald’s has announced that it will use anew cooking oil for its french fries that will decrease substantially trans fatty acid levels and increase the amount of more beneficial polyunsaturated fat. The company claims that 97 out of 100 people cannot detect a difference in taste between the new and old oils. Assuming that this figure is correct (as a long-run proportion),what is the approximate probability that in a random sample of 1000 individuals who have purchased fries at McDonald’s,a. At least 40 can taste the difference between the two oils?b. At most 5% can taste the difference between the two oils?

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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.