The Art Institute of Grosse Out Pointe has decided to evaluate pledge renewal rates for new donors. The director feels that the Institute will be on solid footing if at least 55 percent of last year’s new donors contributed to this year’s direct mail campaign. Seven weeks after letters started going out, a random sample of 75 pledges shows that 39 of the pledges came from individuals who were new donors last year. Should the director be concerned about these results? Explain.
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