Question: A philanthropic organization sends out free gifts to people on
A philanthropic organization sends out “free gifts” to people on their mailing list in the hope that the receiver will respond by sending back a donation. Typical gifts are mailing labels, greeting cards, or post cards. They want to test out a new gift that costs $ 0.50 per item to pro-duce and mail. They mail it to a “small” sample of 2000 customers and find a 90% confidence interval of the mean donation to be ($ 0.489, $ 0.879). As a consultant, what recommendation(s) would you make to the organization about using this gift?
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