The Rowntown Cab Company has 26 cabs. The local man-ager wants to conduct a work sampling study to determine what proportion of the time a cab driver is sitting idle,which he estimates is about 30%. The cabs were observedat random during a five-day period by the dispatcher, who simply called each cab and checked on its status. The man-ager wants the estimate to be within 3% of the propor-tion, with a 95% level of confidence. a. Determine the sample size for this work sampling study.b. The results of the first 20 observations of the worksampling study are shown as follows.What is the revised estimate of the sample size based onthese initial results? Observation Idle Cabs Observation Idle Cabs1 4 11 62 3 12 43 5 13 34 8 14 55 7 15 2

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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.