two-tailed test

two-tailed test definition - business

two-tailed test

In statistics, testing a hypothesis when it is acceptable to reject a hypothesis because the sample statistic is either too large or too small. For example, a petroleum company wants to determine if a new additive to gasoline has an effect on mileage. The null hypothesis is the additive does not affect mileage. The hypothesis is rejected if the additive either increases or decreases mileage.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

Comments
Improve this definition.
Do you have more to add? Share your linguistic knowledge or observation.
/Register to save your comments.