Suppose for the hypothesis testing problem of Exercise 8.2.1, a statistician decides to generate…
Suppose for the hypothesis testing problem of Exercise 8.2.1, a statistician decides to generate U ≤ Uniform and reject H0 whenever U ~ 005. Show that this test has size 0.05. Explain why this is not a good choice of test and why the test derived in Exercise 8.2.1 is better. Provide numerical evidence for this.
Exercise 8.2.1 Suppose that a statistical model is given by the two distributions in the following table.
Determine the UMP size 0.10 test for testing the power of this test? Repeat this with the size equal to 0.05