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

Question

Quizplus · Accepted Answer

Given a significance level (alpha) of 0.10 for a one-tailed test, the critical z value corresponds to the 90th percentile of the standard normal distribution, which is 1.28.

Ophelia O'Brien, VP of Consumer Credit of American First Banks α\alphaα

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