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 < valueNote that the inequality points to leftDecision Rule: Reject H0 when t.s. < c.v.
Right Tailed Test:
H1: parameter > valueNote that the inequality points to rightDecision Rule: Reject H0 when t.s. > c.v.
Two Tailed Test:
H1: parameter not equal valueThe other way to write not equal is < or >Note that the inequality points to both sidesDecision Rule: Reject H0 when t.s. < c.v. (left) or t.s. > c.v. (right)
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