1. 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 30 defaulted loans. Using = 0.10, the appropriate decision is to _______.

Select answer from the options below

reject the null hypothesis

fail to reject the null hypothesis

do nothing

increase the sample size

reduce the sample size

2. The customer help center in your company receives calls from customers who need help with some of the customized software solutions your company provides. Previous studies had indicated that 20% of customers who call the help center are Hispanics whose native language is Spanish and therefore would prefer to talk to a Spanish-speaking representative. This figure coincides with the national proportion, as shown by multiple larger polls. You want to test the hypothesis that 20% of the callers would prefer to talk to a Spanish-speaking representative. You conduct a statistical study with a sample of 35 calls and find out that 11 of the callers would prefer a Spanish-speaking representative. The significance level for this test is 0.01. The value of the test statistic obtained is:

Select answer from the options below

1.73

1.69

0.58

0.29

0.008

3.