A direct mail appeal for contributions from a university’s alumni and supporters is considered to be too costly if less than 15% of the alumni and supporters provide monetary contributions. To determine if a direct mail appeal is cost effective, the fundraising director sends the direct mail brochures to a simple random sample of 173 people on the alumni and supporters mailing lists. They receive monetary contributions from 18 people. Does this evidence demonstrate that the direct mail campaign is not cost effective? Use a 0.02 level of significance.   Step 2 of 3 : Compute the value of the test statistic. Round your answer to two decimal places.

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2-Proportion Test

In a 2-proportion test, two separate proportions are measured at the same time, and their similarity is evaluated. It is also known as a 2-proportion z-test, and a comparison of two different proportions is done in this method.