Ophelia O'Brien, director of consumer credit with Auckland first bank (AFB) monitors the default rate on personal loans at AFB member banks. One of her standards is no more than 5% of personal loans should be in default. Each Friday, the default rate is calculated for a sample of 500 personal loans. Last Friday's sample contained 38 defaulted loans. Using = 0.10, the appropriate decision is

This question has been answered but the answer was not clear. It said to reject the null but then it also said the answer was D and that answer was do not reject the null. I think the answer is to reject the null so I just want to confirm that I have worked this out correctly.