QUESTION 10: A local church parish wants to raise money to add to their campus.

Question

QUESTION 10: A local church parish wants to raise money to add to their campus. In a sample from a previous fund raising campaign, the parish found that of the 120 people in the sample they contacted, that 80 actually contributed money. Of those that contributed money, the average contribution was $850 with a standard deviation of $350. In the recent fundraising campaign, a sample of 90 people revealed that 52 have contributed money with an average contribution of $925 and a standard deviation of $420. When testing (at the 5% level of significance) whether the proportion of peole who are contributing has increased, the p-value of the test statistic is 0.143? What is your conclusion concerning the null that the contributions have increased? MUST SHOW ALL WORK AND CALCULATIONS ACCEPT OR REJECT NULL?

Explanation / Answer

Here it can be observed that the p-value is greater than the signficance level.

Thus, we fail to reject the null hypothesis that the contributions have increased.

Thanks.

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