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When computing a t-test, it is important to distinguish between directional and

ID: 2947632 • Letter: W

Question

When computing a t-test, it is important to distinguish between directional and nondirectional hypotheses as the direction will determine the rejection regions. Describe how the rejection regions would differ according to the type of hypothesis you would use An insurance company asks you to determine whether older drivers are safer than younger ones. Provide a directional hypothesis related to this study. Then. explain how you would need to change the hypothesis so that it would be nondirectional. What happens to the rejection regions and why? Which of the two hypotheses do you think is more appropriat

Explanation / Answer

From the information provided in the question, we can not conclude any specific reason as to why t-test should be used as opposed to z-test.

In general, the decision regarding whether to use z-test or t-test is made by determining the distribution that the particular test statistics follows. If the test statistic follows normal distribution (which will be the case if the original random variable for which we collect the data, follows a normal distribution and the standard deviation of that distribution is known), we use z-test; if test statistic follows t-distribution (which will be the case if the original random variable follows normal distribution but standard deviation of that distribution is unkown), we use t-test.

In given question, a possible choice for original random variable could be a safety score assigned to an individual driver. However, we are not given any information about the type of distribution that this safety score follows nor we have any information regarding whether standard deviation is known or unknown. So we can't conclude whether to use z-test or t-test.

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