Ophelia McPhee, VP of Consumer Credit, Confederation First Bank (CFB) $\mu$

Multiple Choice

Ophelia McPhee, VP of Consumer Credit, Confederation First Bank (CFB) , monitors the default rate on personal loans among CFB members.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
C) $\mu$$\le$ 30
D) $\mu$ > 30
E) s > 30