A charitable organization is considering launching a direct mail fundraising campaign in Orange County. They estimate that this fundraising campaign would be successful only if more than 15% of all Orange county households give donations. Therefore, before spending their resources on a large scale campaign, they want to make sure sending direct mail is an effective way of raising money. The organization sends letters to 100 randomly selected households in Orange county and 20 of them sent back donations. Based on this data, test whether it is worth launching a direct mail fundraising campaign at a 0.05 significance level.

What are the null and alternative hypotheses?

What is the test statistic?

Select the correct conclusion below?

A. Our test statistic is more extreme than our critical value of 1.645. We reject the null hypothesis and conclude that more than 15% of Orange county households will send donations.

B. Our test statistic is less extreme than our critical value of 1.645. We fail to reject the null hypothesis and cannot conclude that more than 15% of Orange county households will send donations.

C. Our test statistic is more extreme than our critical value of 1.96. We reject the null hypothesis and conclude that more than 15% of Orange county households will send donations.

D. Our test statistic is less extreme than our critical value of 1.96. We fail to reject the null hypothesis and cannot conclude that more than 15% of Orange county households will send donations.