Which of the Following Is True About One-Tailed and Two-Tailed

question 9

Multiple Choice

Which of the following is true about one-tailed and two-tailed tests?

• A)For standard normal and t-distributions, which have a mean of zero, lower-tail critical values are negative and upper-tail critical values are positive.
• B)For an upper one-tailed test, if the test statistic is greater than the critical value, the decision would fail to reject the null hypothesis.
• C)For a lower one-tailed test, if the test statistic is less than the critical value, thse decision would be to fail to reject the null hypothesis.
• D)For a two-tailed test, if the test statistic is either greater than the upper critical value or less than the lower critical value, the decision would be to fail to reject the null hypothesis.

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Definitions:

Base Year

A specific year against which economic growth is measured, serving as a standard point of comparison for real economic calculations such as GDP.

Consumer Price Index

An index that measures the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services.

Annual Rate

A way of expressing interest rates or growth rates on an annual basis, allowing for easier comparison across different time periods or financial products.

Inflation

The pace at which prices for general goods and services escalate, causing a decline in buying power.