Ophelia McPhee, VP of Consumer Credit, Confederation First Bank (CFB) $\alpha$

question 25

Multiple Choice

Ophelia McPhee, VP of Consumer Credit, Confederation First Bank (CFB) , monitors the default rate on personal loans among CFB members.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 $\alpha$ = 0.01, critical chi-square value is ___.

• A)6.63
• B)9.21
• C)7.88
• D)10.60
• E)12.34

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Definitions:

Skills

The abilities and expertise that individuals possess, which enable them to perform tasks effectively.

Production Possibilities Frontier

A curve depicting all maximum output possibilities for two or more goods given a set of inputs, assuming all resources are fully utilized.

Labor Hours

The total number of hours worked by all employees or workers in a specific period, often used to measure productivity or output.

Producing

The process of creating goods or services to be offered for sale, involving the combination of various resources.