Take the offer. First USA tested the effectiveness of a double miles campaign by recently sending out offers to a random sample of 50,000 cardholders. Of those, 1184 registered for the promotion. Even though this is nearly a 2.4% rate, a staff member suspects that the success rate for the full campaign will be no different than the standard 2% rate that they are used to seeing in similar campaigns.

What do you predict?

a) What are the hypotheses?

b) Are the assumptions and conditions for inference met?

c) Do you think the rate would change if they use this fundraising campaign? Explain.