Assume that X1, , Xn are i i d with the normal distribution that has mean and variance 1 Suppose that we wish to test the hypotheses H0 0, H1 ...

A sensible test would be to reject H 0 if X n c So let T 0 X ...

Assume that X1, . . . , Xn are i.i.d. with the normal distribution that has mean

Question:

Assume that X1, . . . , Xn are i.i.d. with the normal that has mean μ and variance 1. Suppose that we wish to test the hypotheses
H0: μ ≥ μ0,
H1: μ<μ0.
Find a test statistic T such that, for every c, the test δc that rejects H0 when T ≥ c has power function π(μ|δc) that is decreasing in μ.
Distribution
The word "distribution" has several meanings in the financial world, most of them pertaining to the payment of assets from a fund, account, or individual security to an investor or beneficiary. Retirement account distributions are among the most...