Question
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 appropriate decision is to _______.
reject the null hypothesis
reduce the sample size
do nothing
fail to reject the null hypothesis
increase the sample size
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Business and Administrative Communication
Authors: Kitty o. locker, Donna s. kienzler
10th edition
77830105, 978-0077830106, 978-0073403182
