What is the most common method to pay a gas bill? An independent commission checked a random sample of 500 consumers in a region of the UK and found that 200 people paid online using a monthly direct debit, 160 paid online in response to receiving a bill, and the remainder paid by other offline methods (e.g. by sending a cheque, using an official pay point, over the telephone etc). a) Estimate the proportion of people in the UK population who pay their gas bill using an offline method. Construct a 90% confidence interval for your estimate. b) Estimatetheproportionofpeoplewhopaybymonthlydirectdebit.Constructa95% confidence interval for your estimate.

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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.