Ophelia O'Brien,VP of Consumer Credit of American First Banks (AFB),monitors $\alpha$

question 7

Multiple Choice

Ophelia O'Brien,VP of Consumer Credit of American First Banks (AFB) ,monitors the default rate on personal loans at the AFB 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 appropriate decision is _______.

• A) reduce the sample size
• B) increase the sample size
• C) reject the null hypothesis
• D) fail to reject the null hypothesis
• E) do nothing

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Definitions:

Potential Buyer

An individual or organization with both the interest and means to purchase a product or service.

Selling Process

The sequence of steps taken by a seller to engage a potential customer with the aim of closing a sale, typically including prospecting, presentation, and follow-up.

Preapproach

The research and planning stage before a salesperson makes initial contact with a potential client.

Human Skills

Abilities and qualities enabling individuals to interact effectively and harmoniously with others in a personal or professional setting.