If an economist wishes to determine whether there is evidence that mean family income in a
Community exceeds $50,000
A) either a one-tail or two-tail test could be used with equivalent results.
B) a one-tail test should be utilized.
C) a two-tail test should be utilized.
D) None of the above.

Question

Quizplus · Accepted Answer

A one-tail test should be utilized because the economist is specifically interested in determining if the mean family income exceeds $50,000, which is a directional hypothesis.

If an Economist Wishes to Determine Whether There Is Evidence