Exhibit 10

question 1

Multiple Choice

Exhibit 10.14.In August of 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 and represent the proportion of delinquent borrowers who avoid foreclosure just before and just after the right-to-cure law is enacted,respectively. Refer to Exhibit 10.14.Assuming α = 0.10,does the evidence support the policymakers' claim?

• A)Yes,since the p-value is less than the critical value.
• B)No,since the test statistic value is less than the critical value.
• C)No,since the p-value is greater than the significance level.
• D)Yes,since the test statistic value is greater than the critical value.

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Definitions:

Type I Error

The mistake of rejecting the null hypothesis when it is actually true, commonly referred to as a "false positive."

Type II Error

The error that occurs when a false null hypothesis is not rejected.

Type I Error

The incorrect rejection of a true null hypothesis, also known as a "false positive," occurring when a statistical test falsely indicates the presence of an effect.