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

question 23

Multiple Choice

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 p₁ and p₂ 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 appropriate p-value to verify the claim?

• A) 0.2915
• B) 0.5570
• C) 0.5832
• D) 0.7084

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Definitions:

Depression

A constant state of depression or apathy towards daily tasks signifies this mental illness, leading to considerable difficulties in personal life.

Environmental Stress

The stress experienced by individuals as a result of adverse or challenging environmental conditions.

Deterioration

The process of becoming progressively worse.

Adaptive Behaviour

The collection of conceptual, social, and practical skills that individuals learn and perform to cope effectively with the demands of their environment.