Question: The Northeast Foundation Association (NFA) is in the process of writing an informational bulletin on the advantages of Program Related Investments, or PRIs (typically defined

The Northeast Foundation Association (NFA) is in the process of writing an informational bulletin on the advantages of Program Related Investments, or PRIs (typically defined as loans foundations make to support programmatic goals). Officials at NFA speculate that the default rate on PRIs is at least 5%, but they want a more precise estimate for their informational bulletin. Accordingly, the chief data analyst at NFA contacts a random sample of 250 foundations in the region (that are known PRI users) and asks them to supply data on their PRI default rates. Based on the data supplied, what can NFA officials conclude? Present both null and alternative hypotheses and evaluate them.

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