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:

Employed Category

A classification used in labor statistics to denote individuals who are currently working for payment, in any job or business.

Unemployed Category

The classification of individuals who are not currently working but are actively looking for work and available to start.

Previous Four Weeks

Refers to the time period of the last 28 days preceding the current day, often used in surveys or studies to assess recent behavior or trends.

Unemployed Category

A classification within the labor force that refers to individuals who are without a job but are actively seeking employment.