Question: 2. Let 300(2) and 101(37) be continuous densities with continuous likelihood ratio L(:1:) :2 p1(23)/p0(:1:). Show that for any t > U, Palm-X) S t}


2. Let 300(2) and 101(37) be continuous densities with continuous likelihood ratio L(:1:) :2 p1(23)/p0(:1:). Show that for any t > U, Palm-X) S t} Z P1{L(X)S t}- (Hint: The monotonicity of the power function follows as a consequence. In the probability language, the above inequality is saying that the likelihood ratio under 1P1 dominates that under IPO stochastically.)
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