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

question 34

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, the appropriate decision is ___.

• A)reject the null hypothesis p > 0.05
• B)do not reject the null hypothesis p = 0.05
• C)reject the null hypothesis \(\mu\) > 30
• D)do not reject the null hypothesis \(\mu\)\(\le\)30
• E)do nothing

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Definitions:

Exploit

To take advantage of a situation or person, often unfairly or unethically, for personal gain.

Liberation

The act of setting someone free from imprisonment, slavery, or oppression; the achievement of equal rights and freedom for a group or individual.

Biased-Based Bullying

Bullying resulting from bias against someone because of a real or perceived aspect of their identity.

Homogeneity

The quality or state of being all the same or all of the same kind, often used to describe a population or area with a lack of diversity.