Question: After the 2010 earthquake in Haiti many charitable organizations conducted

After the 2010 earthquake in Haiti, many charitable organizations conducted fundraising campaigns to raise money for emergency relief. Some of these campaigns allowed people to donate by sending a text message using a cell phone to have the donated amount added to their cell-phone bill. The report “Early Signals on Mobile Philanthropy: Is Haiti the Tipping Point?” (Edge Research, 2010) describes the results of a national survey of 1526 people that investigated the ways in which people made donations to the Haiti relief effort. The report states that 17% of Gen Y respondents (those born between 1980 and 1988) and 14% of Gen X respondents (those born between 1968 and 1979) said that they had made a donation to the Haiti relief effort via text message. The percentage making a donation via text message was much lower for older respondents. The report did not say how many respondents were in the Gen Y and Gen X samples, but for purposes of this exercise, suppose that both sample sizes were 400 and that it is reasonable to regard the samples as representative of the Gen Y and Gen X populations.
a. Is there convincing evidence that the proportion of those in Gen Y who donated to Haiti relief via text message is greater than the proportion for Gen X? Use = .01.
b. Estimate the difference between the proportion of Gen Y and the proportion of Gen X that made a donation via text message using a 99% confidence interval. Provide an interpretation of both the interval and the associated confidence level.

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