Contributions, please. 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?

a) What are the hypotheses?

b) Are the assumptions and conditions for inference met?

c) Do you think the rate would drop? Explain.