Answer: Since the difference in the potential energy is negative, therefore, the system lost its mechanical energy. In other words, mechanical energy left the system.
Question 5.2: If energy enters the ball, where did it come from? If energy leaves the ball, where did it go to?
Answer: If energy enters the ball, it comes from an external work done on the ball. On the other hand, if energy leaves the ball, it might get transformed to other forms of energy like thermal energy making the striking surface warm, sound energy producing noise, etc.
Question 5.3: Based on your previous answer, would you expect the temperature of the ball to increase, decrease or stay the same as a result