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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
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 critical value is _______.
A) 1.645
B) -1.645
C) 1.28
D) -1.28
E) 2.28
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