Question: Tax-exempt charities. Donations to tax-exempt organizations such as the Red Cross, the Salvation Army, the YMCA, and the American Cancer Society not only go to the stated charitable purpose, but are used to cover fundraising expenses and overhead. For a sample of 30 charities, the table lists their charitable commitment (i.e., the percentage of their expenses that go toward the stated charitable purpose).

1. Give a point estimate for the mean charitable commitment of tax-exempt organizations.
2. Construct a \(98 \%\) confidence interval for the mean charitable commitment.
3. What assumption(s) must hold for the method estimation used in part b to be appropriate?
4. Why is the confidence interval of part b a better estimator of the mean charitable commitment than the point estimator of part a?

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