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

Question

Quizplus · Accepted Answer

Since the question asks whether the average family income exceeds $25,000 (i.e. greater than), a one-tailed test should be utilized with the alternative hypothesis being that the average family income is greater than $25,000.

If an Economist Wishes to Determine Whether There Is Evidence