A Particular Bank Has Two Loan Modification Programs for Distressed

question 49

Multiple Choice

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.In order 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 and 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

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Definitions:

Morality

Principles concerning the distinction between right and wrong or good and bad behavior.

Impulses

Sudden, involuntary inclinations to act or respond to something without conscious thought.

Guilt

A feeling of responsibility or remorse for some offense, crime, wrong, whether real or imagined.

Antisocial

Behaviors that go against social norms and can harm or lack consideration for the well-being of others.