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

question 35

Multiple Choice

Ophelia O'Brien, VP of Consumer Credit of Credit First Banks (CFB) , monitors the default rate on personal loans at the CFB 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 38 defaulted loans.Using $\alpha$ = 0.10, the appropriate decision is ___.

• A)reduce the sample size
• B)increase the sample size
• C)reject the null hypothesis
• D)do not reject the null hypothesis
• E)do nothing

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Definitions:

Light

Electromagnetic radiation that can be perceived by the human eye, playing a critical role in vision and influencing various biological processes.

Conception

The process of fertilization where a sperm cell combines with an egg cell to form a zygote, marking the beginning of pregnancy.

Age of Viability

The stage of fetal development at which the fetus is considered capable of surviving outside the womb, typically around the 24th week of gestation.

Fetus's Lungs

The developing respiratory organs in a fetus, which undergo significant growth and maturation during pregnancy to prepare for air breathing after birth.