Ophelia O'Brien,VP of Consumer Credit of Credit First Banks (CFB),monitors the default rate on personal loans at the CFB 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

Question

Ophelia O'Brien,VP of Consumer Credit of Credit First Banks (CFB),monitors the default rate on personal loans at the CFB 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

Quizplus · Accepted Answer

The Answer of Ophelia O'Brien,VP of Consumer Credit of Credit First Banks (CFB),monitors the default rate on personal loans at the CFB 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

Ophelia O'Brien,VP of Consumer Credit of Credit First Banks (CFB),monitors α\alphaα

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