When Choosing Between One-Tailed and Two-Tailed Tests

question 36

Multiple Choice

When choosing between one-tailed and two-tailed tests,

• A)use a one-tailed test only if you have a convincing reason for predicting the direction.
• B)always use two-tailed tests.
• C)use a two-tailed test only if you have a convincing reason for not predicting a direction.
• D)use the one that is most likely to produce significant results.

---

Definitions:

Equilibrium Wage

The pay rate where the amount of labor provided is equal to the amount of labor required.

Marginal Product

The additional output resulting from the use of one more unit of a variable input, such as labor or capital.

Equilibrium Wage

The salary point at which labor supply aligns perfectly with labor demand.

Marginal Product

The additional output that is produced by employing one more unit of a factor of production, holding other factors constant.