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

(a) Explain the notions testing within and testing without (outside) the boundaries of a statistical model in relation to Neyman–Pearson (N-P) and mispecification (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 a proper N-P test.

(c) Using your answers in (a)–

(b) explain why M-S testing is particularly vulnerable to the fallacy of rejection.

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