posted by Donaldson
Perform a two-tailed hypothesis test on the intrinsic variable AND a two-tailed hypothesis test on the extrinsic variable's data using a .05 significance level.
Begin by creating a null and an alternate statement. Use Microsoft Excel to process your data. Copy and paste the results of the output to your report in Microsoft Word. Identify the significance level, the test statistic and the critical value. State whether you are rejecting or failing to reject the null hypothesis statement. Repeat
A two-tailed test means that the results could be in either tail of the distribution curve. For example, if you are doing a two-tailed z-test at .05 level of significance, the critical or cutoff values to reject the null would be z = + or - 1.96. If the test statistic exceeds the critical value in either tail (+ or -), then the null is rejected in favor of the alternate hypothesis. If the test statistic does not exceed the critical value in either tail (+ or -), then the null cannot be rejected.
I hope this will help.