The manufacturer of a certain brand of automobiles component claims that mean life of these component is 70 months. An independent agency wants to check this claim and took a randor sample of 40 components and found that the mean life for this sample is 67 months with a standard deviation of 5 months. At 5% LOS, can we conclude that the mean life of these component is less than 70 months?

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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.