Ophelia O'Brien,VP of Consumer Credit of American First Banks (AFB),monitors $\alpha$

Multiple Choice

Ophelia O'Brien,VP of Consumer Credit of American First Banks (AFB) ,monitors the default rate on personal loans at the AFB 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 38 defaulted loans. Using $\alpha$ = 0.10,the appropriate decision is _______.

A) reduce the sample size
B) increase the sample size
C) reject the null hypothesis
D) fail to reject the null hypothesis
E) do nothing