) The Paralyzed Veterans of America is a philanthropic organization that relies on contributions. They send...

) The Paralyzed Veterans of America is a philanthropic organization that relies on contributions. They send free mailing labels and greeting cards to potential donors on their list and ask for a voluntary contribution. To test a new campaign, they recently sent letters to a random sample of 100,000 potential donors and received 4781 donations.

i. Give a 95% confidence interval for the true proportion of those from their entire mailing list who may donate. What is the margin of error of your confidence interval?

ii. Interpret your confidence interval. A staff member thinks that the true rate is 5%. Given the confidence interval you found, do you think that percentage plausible? Why?

iii. A confidence interval based on the same sample is (0.04676, 0.04886). What is the confidence level of this confidence interval?

Solutions

Expert Solution

We are 95% confident that the true proportion of people who will donate is between 0.04649 and 0.04913.

This is not plausible as 5% is outside our confidence interval.

milcah answered 8 months ago

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