When functioning correctly, a machine produces switches with a 0.8% defective rate. Find the probability that a batch of 1,000 switches contains 14 or more defective switches (assuming that the machine functions correctly, i.e., the population defective rate is 0.8%). Suppose a batch of 1,000 switches were inspected when completed, and 14 defective switches were found. Based on your answer to part a, does this sample imply that the machine needs adjustment? Explain your answer.

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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.