Ophelia McPhee, VP of Consumer Credit, Confederation First Bank (CFB), monitors the default rate on personal loans among CFB members.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 $\alpha$= 0.01, critical chi-square value is ___.
A)6.63
B)9.21
C)7.88
D)10.60
E)12.34

Question

Quizplus · Accepted Answer

The critical chi-square value for a one-tailed test with $\alpha$= 0.01 and 1 degree of freedom is 6.63.

Ophelia McPhee, VP of Consumer Credit, Confederation First Bank (CFB) α\alphaα

Ophelia McPhee, VP of Consumer Credit, Confederation First Bank (CFB) $\alpha$