A particular bank has two loan modification programs for distressed borrowers: Home Affordable Modification Program (HAMP)modifications,where the federal government pays the bank $1,000 for each successful modification,and non-HAMP modifications,where the bank does not receive a bonus from the federal government.In order to qualify for a HAMP modification,borrowers must meet a set of financial suitability criteria.What type of hypothesis test should we use to test whether borrowers from this particular bank who receive HAMP modifications are more likely to re-default than those who receive non-HAMP modifications?
A)A hypothesis test for .
B)A hypothesis test for .
C)A matched-pairs hypothesis test.
D)We are unable to conduct a hypothesis test since independent random samples of each group could not be collected.

Question

A particular bank has two loan modification programs for distressed borrowers: Home Affordable Modification Program (HAMP)modifications,where the federal government pays the bank $1,000 for each successful modification,and non-HAMP modifications,where the bank does not receive a bonus from the federal government.In order to qualify for a HAMP modification,borrowers must meet a set of financial suitability criteria.What type of hypothesis test should we use to test whether borrowers from this particular bank who receive HAMP modifications are more likely to re-default than those who receive non-HAMP modifications?
A)A hypothesis test for . 
B)A hypothesis test for . 
C)A matched-pairs hypothesis test. 
D)We are unable to conduct a hypothesis test since independent random samples of each group could not be collected.

Quizplus · Accepted Answer

The Answer of A particular bank has two loan modification programs for distressed borrowers: Home Affordable Modification Program (HAMP)modifications,where the federal government pays the bank $1,000 for each successful modification,and non-HAMP modifications,where the bank does not receive a bonus from the federal government.In order to qualify for a HAMP modification,borrowers must meet a set of financial suitability criteria.What type of hypothesis test should we use to test whether borrowers from this particular bank who receive HAMP modifications are more likely to re-default than those who receive non-HAMP modifications?
A)A hypothesis test for . 
B)A hypothesis test for . 
C)A matched-pairs hypothesis test. 
D)We are unable to conduct a hypothesis test since independent random samples of each group could not be collected.

A Particular Bank Has Two Loan Modification Programs for Distressed