The trick is recognizing options_from_collection_for_select(), not select_tag(), creates the <options>, and only they can use the selected='selected' attribute.
Google for options_from_collection_for_select() and "default value"...
Hadn't realized that you were trying to specify "Problem" as the
default. Note that if your :value method gives another result for
"Problem", like for example, 1, then you have to change the selected
field accordingly.