**Educational Website Content: Understanding Hypothesis Testing in Direct Mail Campaigns**---**Context:**A direct mail appeal targeting contributions from a university’s alumni and supporters is deemed too costly if it garners monetary contributions from less than 22% of the recipients. To assess the cost-effectiveness of this campaign, a fundraising director sent brochures to a random sample of 220 individuals from the alumni and supporters mailing list. The campaign resulted in monetary contributions from 37 people. The objective is to determine if this result provides significant evidence at a 0.05 level of significance that the campaign is not cost-effective.**Step 3 of 3: Drawing a Conclusion and Interpreting the Decision****Analysis and Decision:**To conclude the hypothesis test, we need to determine which of the following statements is correct based on the evidence and level of significance:1. **Reject the null hypothesis** and conclude that there is sufficient evidence at a 0.05 level of significance that the direct mail campaign is not cost-effective. 2. **Fail to reject the null hypothesis** and conclude that there is sufficient evidence at a 0.05 level of significance that the direct mail campaign is not cost-effective. 3. **Fail to reject the null hypothesis** and conclude that there is insufficient evidence at a 0.05 level of significance that the direct mail campaign is not cost-effective. 4. **Reject the null hypothesis** and conclude that there is insufficient evidence at a 0.05 level of significance that the direct mail campaign is not cost-effective.**Explanation:**Each option involves terms critical to hypothesis testing:- *Null Hypothesis (H0):* The direct mail campaign is cost-effective.- *Alternative Hypothesis (H1):* The direct mail campaign is not cost-effective.- *Level of Significance (α = 0.05):* The threshold for deciding whether to reject the null hypothesis.**Interpretation Strategy:**- Rejecting the null hypothesis implies that the evidence supports the campaign being not cost-effective.- Failing to reject the null hypothesis implies that the evidence is insufficient to deem the campaign not cost-effective.The analysis must compare the observed proportion (37/220) to the hypothesized proportion (22%) using statistical testing procedures to decide on the correct conclusion based on the evidence provided and the 0.05 significance level.**Conclusion:**The final decision should be made based on statistical calculations not shown in this

From the provided information, Sample size (n) = 220 From which they receive monetary contributions from 37 people. Sample proportion (p̂) = 37/220 = 0.1682 Level of significance (α) = 0.05The hypotheses are as follow: H0: p = 0.22 Ha: p < 0.22 The value of test statistic can be obtained as:The p value of test statistic from the standard normal table is 0.0318. The p value is less than level of significance (0.05). Therefore, the null hypothesis would reject and it can be concluded that there is sufficient evidence to support the claim that the direct mail campaign is not cost effective. Hence, the first option is correct.