Two reporters are both interested in finding the proportion of people in town who are unemployed. They each collect a random sample and use the proportion of unemployed people in the sample to run 100 simulations to determine a margin of error. The first reporter claims the proportion of unemployed people in town is 0.045 with a margin of error of 0.011. The second reporter claims the proportion of unemployed people in town is 0.037 with a margin of error of 0.02.

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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.