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

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.Ophelia's null hypothesis is _______.

A) p > 0.05
B) p = =0.05 to be consistent with text, null is always the =
C) n = 30
D) n = 500
E) n = 0.05