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) , monitors the default rate on personal loans at the CFB 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. Ophelia's null hypothesis is ___.

A) π > 0.05
B) π = 0.05
C) n = 30
D) n = 500
E) n = 0.05