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

question 21

Multiple Choice

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 $\alpha$ = 0.10, the appropriate decision is to _______.

• A)reduce the sample size
• B)increase the sample size
• C)reject the null hypothesis
• D)fail to reject the null hypothesis
• E)do nothing

---

Definitions:

Auditory Cortex

The part of the brain that is responsible for processing auditory information.

Cerebellum

A major structure of the hindbrain that controls fine motor skills, balance, coordination, and posture.

Ulnar Grasp

A type of grasp reflex seen in infants, involving the fingers closing tightly around an object placed in the hand, named after the ulna bone due to its involvement in the movement.

Pincer Grasp

The coordination of the index finger and thumb to grasp small objects, a significant milestone in infant motor skill development.