Determining the type of test

Type of Tests:

Here we can determine the various tests: left tail, right tail or two-tail test

The type of test is recognized by the Alternative Hypothesis (H1)

Left Tailed Test:

H1: parameter < value
Note that the inequality points to left
Decision Rule: Reject H0 when t.s. < c.v.

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Right Tailed Test:

H1: parameter > value
Note that the inequality points to right
Decision Rule: Reject H0 when t.s. > c.v.

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Two Tailed Test:

H1: parameter not equal value
The other way to write not equal is < or >
Note that the inequality points to both sides
Decision Rule: Reject H0 when t.s. < c.v. (left) or t.s. > c.v. (right)

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