If an economist wishes to determine whether there is evidence that average family income in a community equals $25,000
A) either a one-tailed or two-tailed test could be used with equivalent results.
B) a two-tailed test should be utilized.
C) a one-tailed test should be utilized.
D) none of the above

Question

Quizplus · Accepted Answer

A two-tailed hypothesis test should be used when there is no prior expectation regarding the direction of the relationship or difference being tested. In this case, the economist is simply testing whether the average family income equals $25,000, without any prior expectation of it being higher or lower. Therefore, a two-tailed test would be appropriate.

If an Economist Wishes to Determine Whether There Is Evidence