In August 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 p₁andp₂ represent the proportion of delinquent borrowers who avoid foreclosure just before and just after the right-to-cure law is enacted,respectively.Which of the following is the correct competing hypotheses that will test the policymakers' claim? A) H₀: p₁-p₂ ≤ 0,H_A: p₁-p₂ 0 B) H₀: p₁-p₂ ≥ 0,H_A: p₁-p₂ 0,H_A: p₁-p₂ ≤ 0

Question

In August 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 p₁andp₂ represent the proportion of delinquent borrowers who avoid foreclosure just before and just after the right-to-cure law is enacted,respectively.Which of the following is the correct competing hypotheses that will test the policymakers' claim? A) H₀: p₁-p₂ ≤ 0,H_A: p₁-p₂ > 0 B) H₀: p₁-p₂ ≥ 0,H_A: p₁-p₂ < 0 C) H₀: p₁-p₂ = 0,H_A: p₁-p₂ ≠ 0 D) H₀: p₁-p₂ > 0,H_A: p₁-p₂ ≤ 0

Quizplus · Accepted Answer

The correct competing hypotheses should be one-tailed, with the alternative hypothesis (H_A) stating that the proportion of delinquent borrowers who avoid foreclosure after the law is enacted (p₂) is lower than the proportion who avoid foreclosure before the law is enacted (p₁). Therefore, the correct answer is B, with H₀ stating that the difference between the two proportions is greater than or equal to zero.

In August 2010,Massachusetts Enacted a 150-Day Right-To-Cure Period That Mandates