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

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 $\alpha$ = 0.10, the observed z value is _______.

A) 1.03
B) -1.03
C) 0.046
D) -0.046
E) 1.33