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.Define the null and alternative hypotheses to test whether borrowers who receive HAMP modifications default less than borrowers who receive non-HAMP modifications.Let and represent the proportion of borrowers who received HAMP modifications that did not re-default,and the proportion of borrowers who received non-HAMP modifications that did not re-default,respectively

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.Define the null and alternative hypotheses to test whether borrowers who receive HAMP modifications default less than borrowers who receive non-HAMP modifications.Let  and  represent the proportion of borrowers who received HAMP modifications that did not re-default,and the proportion of borrowers who received non-HAMP modifications that did not re-default,respectively

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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.Define the null and alternative hypotheses to test whether borrowers who receive HAMP modifications default less than borrowers who receive non-HAMP modifications.Let  and  represent the proportion of borrowers who received HAMP modifications that did not re-default,and the proportion of borrowers who received non-HAMP modifications that did not re-default,respectively

A Particular Bank Has Two Loan Modification Programs for Distressed