First USA, a major credit card company, is planning a new offer for their current cardholders. First USA will give double airline miles on purchases for the next 6 months if the cardholder goes online and registers for this offer. To test the effectiveness of this campaign, the company recently sent out offers to a random sample of 50,000 cardholders. Of those, 1184 registered. A staff member suspects that the success rate for the full campaign will be comparable to 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 conditions for inference met?

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