QUESTION 12: A local church parish wants to raise money to add to their campus.

Question

QUESTION 12: 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 134 people in the sample they contacted, that 70 actually contributed money. Of those that contributed money, the average contribution was $885 with a standard deviation of $260. In the recent fundraising campaign, a sample of 92 people revealed that 48 have contributed money with an average contribution of $1,116 and a standard deviation of $365. When testing (at the 5% level of significance) whether the average amount contributed has increased in the current campaign compared to the previous campaign, what is the test statistic? (please round your answer to 2 decimal places) MUST SHOW ALL WORK AND CALCULATIONS

Explanation / Answer

Below are the null and alternative hypothesis

p-value = 0.000153

As p-value is less than significance level of 0.05, we reject the null hypothesis.

This means the average amount contributed has increased in the current campaign compared to the previous campaign,

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