Our null hypothesis is that the true coefficient is zero. In which case would we choose to use a one-sided alternative hypothesis over a two-sided alternative hypothesis? We choose a one sided alternative hypothesis when we have a large sample size. We choose a one sided alternative hypothesis when we specify a low (0.01) significance level. It does not matter what type of alternative hypothesis we specify. Choose a one sided alternative hypothesis when the theory and literature suggests either that the true coefficient should be greater than zero or that the true coefficient should be less than zero.

Our null hypothesis is that the true coefficient is zero. In which case would we choose to use a one-sided alternative hypothesis over a two-sided alternative hypothesis? We choose a one sided alternative hypothesis when we have a large sample size. We choose a one sided alternative hypothesis when we specify a low (0.01) significance level. It does not matter what type of alternative hypothesis we specify. Choose a one sided alternative hypothesis when the theory and literature suggests either that the true coefficient should be greater than zero or that the true coefficient should be less than zero.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Our null hypothesis is that the true coefficient is zero. In
which case would we choose to use a one-sided alternative
hypothesis over a two-sided alternative hypothesis?
We choose a one sided alternative hypothesis when we have a
large sample size.
We choose a one sided alternative hypothesis when we specify a
low (0.01) significance level.
It does not matter what type of alternative hypothesis we specify.
Choose a one sided alternative hypothesis when the theory and
literature suggests either that the true coefficient should be
greater than zero or that the true coefficient should be less than
zero.

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