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

question 79

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. Ophelia's null hypothesis is _______.

• A) p > 0.05
• B) p = 0.05
• C) n = 30
• D) n = 500
• E) n = 0.05

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Definitions:

Instrument

A formal document that serves as a legal evidence of a fact or agreement, such as a contract, deed, will, or promissory note.

Promissory Notes

Written promises to pay a specified sum of money to a certain person or entity under agreed terms.

Negotiated

Discussed or arranged terms and conditions towards an agreement through a process of bargaining.

Assigned

Designated or allocated to someone or something for a specific purpose.