The U.S. average for state andlocal taxes for a family of four is $4251. A randomsample of 20 families in a northeastern state indicatesthat they paid an annual amount of $4654 with astandard deviation of $950. At a=0.1, is theresufficient evidence to conclude that they pay more thanthe national average of $4251?

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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.