Directional Hypotheses Are Also Feasible in the Case of Tests

question 62

Multiple Choice

Directional hypotheses are also feasible in the case of tests of statistically significant differences. The only difference is:

• A) ignore the sign of the z value because we are only looking for a significant difference; the size of the z value.
• B) that the z value for 95% is 1.64 and for 99% is 2.33.
• C) we need to not only look at the z value but the sign to ensure the direction.
• D) that the alternative hypothesis is called the directional hypothesis.
• E) the null hypothesis states the opposite direction of difference to what the directional hypothesis is proposing.

---

Definitions:

Monetary Items

Units of currency held and assets and liabilities to be received or paid in a fixed or determinable amount of currency.

Currency Units

Units of account used as a medium of exchange, represented in forms such as dollars, euros, yen, etc.

Liabilities

Financial obligations or debts that a company owes to others, which must be settled over time through the transfer of economic benefits.

AASB 121

The Australian Accounting Standards Board document that refers to the effects of changes in foreign exchange rates on financial reporting.