The actual proportion of men who favor a certaintax proposal is 0.40 and the corresponding proportionfor women is 0.25; n1 = 500 men and n2 = 400women are interviewed at random, and their individualresponses are looked upon as the values of independentrandom variables having Bernoulli distributions with therespective parameters θ1 = 0.40 and θ2 = 0.25. Whatcan we assert, according to Chebyshev’s theorem, witha probability of at least 0.9375 about the value we willget for ˆ 1 − ˆ 2, the difference between the two sampleproportions of favorable responses? Use the result ofExercise 5.

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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.