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

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,observed chi-square value is _______.

A) 13.38
B) 26.29
C) 2.09
D) 1.05
E) 3.98