(a) Explain the notions of testing within and testing without (outside) the boundaries of a statistical model in relation to NeymanPearson (N P) and misspecification (M S) testing (b) Specify the generic form of the null and alternative hypotheses in M S testing for a statistical modelM (z) and compare it with that of the archetypal N P test (c) Using your answers in (a) and (b) explain why M S testing is vulnerable to both the fallacies of acceptance and rejection (d) Explain why type II error is more serious in M S testing as opposed to N P testing

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Question: (a) Explain the notions of testing within and testing without (outside) the boundaries of a statistical model in relation to NeymanPearson (N-P) and misspecification (M-S)

(a) Explain the notions of testing within and testing without (outside) the boundaries of a statistical model in relation to Neyman–Pearson (N-P) and misspecification (M-S)

testing.

(b) Specify the generic form of the null and alternative hypotheses in M-S testing for a statistical modelMθ (z) and compare it with that of the archetypal N-P test.

(c) Using your answers in

(a) and

(b) explain why M-S testing is vulnerable to both the fallacies of acceptance and rejection.

(d) Explain why type II error is more serious in M-S testing as opposed to N-P testing.

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