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

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.Using $\alpha$ = 0.01, observed chi-square value is ___.

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