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

question 76

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Ophelia O'Brien, VP of Consumer Credit of American First Banks (AFB) , monitors the default rate on personal loans at the AFB member banks.One of her standards is "no more than 5% of personal loans should be in default." On each Friday, the default rate is calculated for a sample of 500 personal loans.Last Friday's sample contained 30 defaulted loans.Using α\alpha = 0.10, the critical z value is _______.


Definitions:

Physiological Psychology

A branch of psychology that studies the relationship between physiological processes and behaviors.

Psychoanalysis

A therapeutic approach that explores the unconscious mind, aiming to uncover and resolve conflicts and psychological issues.

Selye

Refers to Hans Selye, a pioneering endocrinologist who defined the General Adaptation Syndrome, a theory of stress response.

Freud

Sigmund Freud, an Austrian neurologist who founded the discipline of psychoanalysis.

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