In Exercise 23 of Chapter 8, you learned that the Paralyzed Veterans of America is a philanthropic organization that relies on contributions. They send free mailing labels and greeting cards to potential donors on their list and ask for a voluntary contribution. To test a new campaign, the organization 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 will be lower if they run this campaign as currently designed.
a) What are the hypotheses?
b) Are the assumptions and conditions for inference met?
c) Do you think the rate would drop? Explain.