Consider using a one-tailed as well as a two-tailed test of a null hypothesis regard- ing...

Consider using a one-tailed as well as a two-tailed test of a null hypothesis regard- ing an estimated regression coefficient. For the same significance level, which test is more stringent? In other words, for which test does rejection of the null hypothesis automatically imply rejection in the other test as well, but not vice versa? Explain.

Expert Solution

Ans - If the two tailed hypothesis is rejected then one tailed automatically rejected at tha same level

for example - If we have Alpha=. 05

then in two tailed hypothesis, critical value in z test is 1.96

and z statistics = 2.6

then we reject Ho because Z statistics> greater than Z critical

if the same hypothesis is tested with one tailed then z critical values =1.645

then, here we see that z statistics here also greater than z critical then we reject the hypothesis

orchestra answered 2 years ago

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