The Paralyzed Veterans of the America is a philanthropic organization which relies on contributions. To test the new campaign, the organization recently sent letters to 100,000 potential donors and received 4800 donations. They've had a contribution rate of 5% in the past, but a staff member worries that the rate will be lower if they run the campaign as currently designed.
(a) Define your parameter of interest.
(b) What are the hypotheses?
(c) Compute the test statistic.
(d) Compute the p-value.
(e) What is your conclusion?