QUESTION 23 The government is considering to implement a water pollution control measure that will cost $8,554,920. The benefits of the polic will depend on the amount of rain that might fall on the city. There are three possible scenarios: high, normal, and low rain. The probability of high rain is 27% and if there is high rain the benefits of the water pollution measure are $5,203,833. The probability of normal rain is 45% and if there is high rain the benefits of the water pollution measure are $5,724,919 The probability of low rain is 100%-27% - 45% and if there is low rain the benefits of the water pollution measure are $9,306,477. What are the expected benefits of this water pollution policy?

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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.