Question: Show that the square of the expression for z in
Show that the square of the expression for z in Exercise 13.12 equals
So that the two tests are actually equivalent when the alternative hypothesis is θ1 ≠ θ2. The test described in Exercise 13.12, but not the one based on the θ2 statistic, can be used when the alternative hypothesis is θ1 < θ2 or θ1 > θ2.
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