Resolved: difference between one sided and two sided hypothesis tests
one side testing : (1-α)
two sided tests : (1-α/2)
and
critical value for one sided is : (Z)
Critical value for two sided is : (Z α/2)
is that ?
1 answers ( 1 marked as helpful)
Hi Gautam!
Thanks for reaching out!
Essentially, yes.
One-sided hypothesis tests determine if a parameter is greater than or less than a specified value, using a significance level α and a critical value Z1−α. Two-sided hypothesis tests determine if a parameter is different from a specified value, splitting the significance level α between two tails, using a critical value Z1−α/2.
Keep up the good work!
Best,
Ivan
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