Ophelia O'Brien, VP of Consumer Credit of American First Banks

question 87

Multiple Choice

Ophelia O'Brien, VP of Consumer Credit of American First Banks (AFB) , is designing a p chart to monitor the default rate on personal loans at the AFB member banks.Her data include the proportion in default for 30 samples of personal loans.Each sample contains 50 loans, and the average of the 30 proportions is 0.05.The lower control limit for Ophelia's p chart is _____________.

• A)0.0000
• B)0.0204
• C)0.0308
• D)0.0149
• E)-1.0000

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Definitions:

Critical Thinking

The disciplined process of actively and skillfully conceptualizing, applying, analyzing, synthesizing, and evaluating information to reach a conclusion.

Actively Evaluating

The process of consciously assessing or analyzing something in a detailed manner.

Criticizing Ideas

The process of evaluating the merits, faults, or value of thoughts and propositions through analysis and judgment.

Functional Fixedness

A cognitive bias that limits a person to using an object only in the way it is traditionally used, hindering problem-solving and creativity.