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, the appropriate decision is ___.

A) reject the null hypothesis p > 0.05
B) do not reject the null hypothesis p = 0.05
C) reject the null hypothesis $\mu$ > 30
D) do not reject the null hypothesis $\mu$$\le$ 30
E) do nothing