A
AcadiFi
PR
prepgrind2026-05-21
cfaLevel IQuantitative MethodsHypothesis Testing

How do I know which tail a hypothesis test should use?

I can calculate the test statistic, but I keep mixing up left-tailed, right-tailed, and two-tailed tests. Is there a fast way to decide which tail matters?

35 upvotes
AcadiFi TeamVerified Expert
AcadiFi Certified Professional

Read the alternative hypothesis first. The alternative tells you what kind of evidence would contradict the null.

  • Ha: mu > 4% means right-tailed.
  • Ha: mu < 4% means left-tailed.
  • Ha: mu != 4% means two-tailed.
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After that, the rest is mechanical: calculate the statistic, place it on the correct distribution, and compare it with the correct rejection region.

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#hypothesis-testing#one-tailed-test#two-tailed-test#alternative-hypothesis