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

Multiple Choice

Ophelia O'Brien, VP of Consumer Credit of Credit First Banks (CFB) , is designing a p chart to monitor the default rate on personal loans at the CFB member banks.Her data includes the proportion in default for 30 samples of personal loans.Each sample contained 50 loans, and the average of the 30 proportions is 0.05.The lower control limit for Ophelia's p chart is ___.

A) 0.0000
B) 0.0204
C) 0.0308
D) 0.0149
E) -1.0000