A cynical friend tells you that less than 20% of people in the US contribute to charities. You think people are more compassionate than this and decide to test your friend's claim with the data from this exercise.

Data from the American Time Use Survey finds that 7563 people in a sample of size 27,400 contribute to charity. Do the data support your friend's hypothesis?

• State the null and alternative hypothesis.
• State the significance level for the test and what it means.
• Test the hypothesis two ways: a) calculating a z statistics b) using the confidence interval you created.
• Calculate the p-value and explain what it means.
• Draw a conclusion. Is your cynical friend right or are you right? How do you know?