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

question 65

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, observed chi-square value is ___.

• A)13.38
• B)26.29
• C)2.09
• D)1.05
• E)3.98

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