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Week 14 Lesso
Course Module.
My Course - PS.
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Two-tailed test
To identify the null and alternative hypothesis, first determine the purpose of the hypothesis test. In this scenario, the trader is analyzing whether the proportion of stocks that offer dividends is different from 0.14 . Since the primary concern of this test is dealing with whether a population parameter, \( p \), is different from a specified value, \( p_{0} \) and no direction is specified, then the trader should conduct a two-tailed test.
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Another trader would like to carry out a hypothesis test about stocks that offer dividends. Why is this hypothesis test righttailed?
Select the correct answer below:
This is a right-tailed test because a direction is not specified.
This is a right-tailed test because a direction is specified. The population parameter is greater than the specified value.
This is a right-tailed test because a direction is specified. The population parameter is less than the specified value.
More information is needed.
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