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

question 76

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 critical z value is _______.

• A)1.645
• B)-1.645
• C)1.28
• D)-1.28
• E)2.28