If an economist wishes to determine whether there is evidence that average family income in a community exceeds $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 one-tailed test should be used because the question is asking specifically whether income is greater than $50,000, implying a directional hypothesis. A two-tailed test would be used if the question was simply asking whether income is different from $50,000 in either direction, without a specific hypothesis about which direction it would differ.

If an Economist Wishes to Determine Whether There Is Evidence