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In Which Case Would We Choose to a One-Sided Alternative

Question 7

Multiple Choice

In which case would we choose to a one-sided alternative hypothesis over a two-sided alternative hypothesis?


A) It does not matter what type of alternative hypothesis we specify.
B) Choose a one sided alternative hypothesis when the theory and literature suggests either that the coefficient should be greater than zero or that the coefficient should be less than zero.
C) We choose a one sided alternative hypothesis when we have a large sample size.
D) We choose a one sided alternative hypothesis when we specify a low (0.01) alpha.

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