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

Question

Quizplus · Accepted Answer

A two-tailed test is appropriate for determining if there is a significant difference from a specific value (in this case, $50,000), without specifying the direction of the difference. This allows for testing if the average family income is either less than or greater than $50,000.

If an Economist Wishes to Determine Whether There Is Evidence