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Directional and Non-Directional Hypotheses

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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 non-directional. What happens to the rejection regions and why? Which of the two hypotheses do you think is more appropriate and why?

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This solution is comprised of a detailed explanation of the directional and non-directional hypothesis. This solution mainly discussed the directional hypothesis with clear examples. A logical answer is given for every situation for better clarity on using the directional and non-directional hypothesis.

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