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

question 23

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 $\alpha$ = 0.01,the appropriate decision is _______.

• A) reject the null hypothesis p > 0.05
• B) do not reject the null hypothesis p = 0.05
• C) reject the null hypothesis \(\mu\) > 30
• D) do not reject the null hypothesis \(\mu\) \(\le\) 30
• E) do nothing

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Definitions:

Supportive Emotional Climate

An environment characterized by empathy, understanding, and encouragement, fostering emotional well-being.

Negative Self-Talk

A person's habit of making critical or pessimistic thoughts about themselves.

Transference

A psychological phenomenon in which an individual unconsciously redirects feelings and attitudes from a person or situation in the past to someone or something in the present.

Behavior Therapy

A form of psychotherapy that focuses on changing negative behaviors through reinforcement and conditioning techniques.