Another loan officer, working for a different bank,would like to make the claim thatthe average interest rate that compounds annually on a five-year loan is different than 5.75 percent. The loan officer would like to carry out a hypothesis test and test the claim thatthe average interest rate that compounds annually on a five-year loan is different than 5.75 percent. Why is this hypothesis test two-tailed?

Select the correct answer below:

This is a two-tailed test because no direction is specified.

This is a two-tailed test because adirection is specified. The population parameter is greaterthan the specified value.

This is a two-tailed test because adirection is specified. The population parameter is less than the specified value.

More information is needed.