RESEARCH METHODOLOGY

METHODS OF DATA ANALYSIS

DECISION MAKING WITH HYPOTHESIS TESTING

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
A hypothesis test in which rejection of the null hypothesis occurs for values of the point estimator in either tail of the sampling distribution is called
A
the null hypothesis
B
the alternative hypothesis
C
a one-tailed test
D
a two-tailed test
Explanation: 

Detailed explanation-1: -It is not necessary to specify a direction before testing. A two-tailed test, then, will include the potential of both a positive and a negative effect.

Detailed explanation-2: -A one-tailed test looks for an “increase” or “decrease” in the parameter whereas a two-tailed test looks for a “change” (could be increase or decrease) in the parameter.

Detailed explanation-3: -A two-tailed hypothesis test is designed to show whether the sample mean is significantly greater than and significantly less than the mean of a population. The two-tailed test gets its name from testing the area under both tails (sides) of a normal distribution.

Detailed explanation-4: -The probability of committing a type I error (rejecting the null hypothesis when it is actually true) is called (alpha) the other name for this is the level of statistical significance.

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