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4.4 One and Two Tailed Tests Explained

Sep 12, 2025

Overview

This lecture explains hypothesis testing in statistics, focusing on the difference between one-tailed and two-tailed tests using real-world traffic examples.

Hypothesis Testing Basics

  • Hypothesis testing checks if data supports a specific idea (hypothesis) about reality.
  • The null hypothesis (H₀) assumes no effect or no difference between groups.
  • The alternative hypothesis (H₁) predicts a specific effect or difference.

Statistical Tails and Significance

  • Tails of a distribution represent the extreme ends where rare or extreme values occur.
  • The significance level (commonly 0.05) defines how much of each tail is in the "critical region" for rejecting H₀.
  • A normal (bell-shaped) distribution allows use of standard hypothesis tests.

Two-Tailed Tests

  • Used when looking for any difference between groups, regardless of direction.
  • Critical regions are located in both tails of the distribution.
  • If the test statistic falls in either tail's critical region, H₀ is rejected.
  • Example: Joan compares traffic in two neighborhoods to see if there's any difference.

One-Tailed Tests

  • Used when interested in a difference in a specific direction (e.g., more or less).
  • The critical region is only in one tail, making the test more sensitive for effects in that direction.
  • Example: Noah tests if traffic increased after building a park in a specific neighborhood.

Choosing the Right Test

  • Decide on one- or two-tailed test before collecting or analyzing data.
  • Switching from a two-tailed test to a one-tailed test after seeing results biases findings and is considered unethical.
  • One-tailed tests have more power to detect effects in one direction but miss effects in the other.

Key Terms & Definitions

  • Null Hypothesis (H₀) — the assumption that there is no effect or difference.
  • Alternative Hypothesis (H₁) — the belief that there is an effect or difference.
  • Significance Level (α) — the probability threshold (often 0.05) for rejecting H₀.
  • Critical Region — part(s) of the distribution where, if the test statistic falls, H₀ is rejected.
  • One-Tailed Test — checks for an effect in only one direction.
  • Two-Tailed Test — checks for any difference, regardless of direction.

Action Items / Next Steps

  • Review how to select between one-tailed and two-tailed tests for different scenarios.
  • Practice setting null and alternative hypotheses for sample situations.
  • Ensure ethical statistical testing by choosing the test type before analyzing data.