Chapter 15, Problem 29E

Contributions, please II We learned in Chapter 13, Exercise 35 that the Paralyzed Veterans of America recently sent letters to a random sample of 100,000 potential donors and received 4781 donations. They’ve had a contribution rate of 5% in past campaigns, but a staff member worries that the rate is lower now that they’ve redesigned their letter. Is there evidence that the 4.78% they received is evidence of a real drop in the contribution rate?

1. a) What are the hypotheses?
2. b) Are the assumptions and conditions for inference met?
3. c) Do you think the rate would drop? Explain.