A philanthropic organization sent free mailing labels and greeting cards to a ra

Question

A philanthropic organization sent free mailing labels and greeting cards to a random sample of 100,000 potential donors on their mailing list and received 5030 donations. They have had a contribution rate of 5% in past campaigns, but a staff member hopes that the rate will be higher if they run this campaign as currently designed. Complete parts a through c below. Are the assumptions and conditions for inference met? Which assumptions and conditions below are met? Select all that apply. Do you think the donation rate would rise?

Explanation / Answer

a.) H0 : p = 0.05 H1 : p > 0.05

b.) A. D.

c.) p = 5030/100000 = 0.0503

Z = (0.0503 - 0.05)/ ( 0.0503 × 0.9497/ 100000)

= 0.0003/ 0.00069

= 0.4341

P-value = 0.3321

The P value is too high to conclude that the rate will be above 5%

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