Question

A data analyst at a subscription streaming company is testing whether a redesigned onboarding flow increases the 30-day retention rate. Leadership specifically wants to know only if retention improved, not whether it changed in either direction. The analyst sets a significance level of 0.05 and runs a hypothesis test comparing the new flow to the old flow. Which testing approach best matches the stated business question?

Accepted Answer

A one-tailed test, because the hypothesis is directional (only an increase in retention is of interest)

Answer

A two-tailed test, because any statistical comparison of two groups must account for both directions

Answer

A two-tailed test, because it produces a smaller p-value and is therefore more likely to reach significance

Answer

A one-tailed test, because it eliminates the possibility of a Type I error at the chosen alpha level