Exhibit 10.14.In August of 2010,Massachusetts enacted a 150-day right-to-cure period that mandates that lenders give homeowners who fall behind on their mortgage an extra five months to become current before beginning foreclosure proceedings.Policymakers claimed that the policy would result in a higher proportion of delinquent borrowers becoming current on their mortgages.To test this claim,researchers took a sample of 244 homeowners in danger of foreclosure in the time period surrounding the enactment of this law.Of the 100 who fell behind just before the law was enacted,30 were able to avoid foreclosure,and of 144 who fell behind just after the law was enacted,48 were able to avoid foreclosure.Let and represent the proportion of delinquent borrowers who avoid foreclosure just before and just after the right-to-cure law is enacted,respectively. Refer to Exhibit 10.14.Which hypothesis will test the policymakers' claim.

Question

Exhibit 10.14.In August of 2010,Massachusetts enacted a 150-day right-to-cure period that mandates that lenders give homeowners who fall behind on their mortgage an extra five months to become current before beginning foreclosure proceedings.Policymakers claimed that the policy would result in a higher proportion of delinquent borrowers becoming current on their mortgages.To test this claim,researchers took a sample of 244 homeowners in danger of foreclosure in the time period surrounding the enactment of this law.Of the 100 who fell behind just before the law was enacted,30 were able to avoid foreclosure,and of 144 who fell behind just after the law was enacted,48 were able to avoid foreclosure.Let  and  represent the proportion of delinquent borrowers who avoid foreclosure just before and just after the right-to-cure law is enacted,respectively. Refer to Exhibit 10.14.Which hypothesis will test the policymakers' claim.

Quizplus · Accepted Answer

The policymakers claimed that the right-to-cure policy would result in a higher proportion of delinquent borrowers becoming current on their mortgages. The hypothesis that will test this claim is whether the proportion of delinquent borrowers who avoid foreclosure just after the right-to-cure law is enacted (11eaa4ae_7ac1_d731_9180_1d8841262a34_TB2339_11) is significantly higher than the proportion of delinquent borrowers who avoid foreclosure just before the law was enacted (11eaa4ae_7ac1_d730_9180_e33e5f05f5ba_TB2339_11). Therefore, the best choice is B.