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.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 p₁ and p₂ 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) 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

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.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 p₁ and p₂ 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) 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 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.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 p₁ and p₂ 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) 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

A Particular Bank Has Two Loan Modification Programs for Distressed