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

question 24

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 30 defaulted loans.Using $\alpha$ = 0.10, the observed z value is ___.

• A)1.03
• B)-1.03
• C)0.046
• D)-0.046
• E)1.33

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