Ophelia O'Brien, VP of Consumer Credit of Credit First Banks $\alpha$

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. Using
$\alpha$ = 0.10, the critical z value is ___.

A) 1.645
B) -1.645
C) 1.28
D) -1.28
E) 2.28