Question: Let X 1 ,X 2 , . . . , X 10 denote a random sample of size 10 from a Poisson distribution with mean

Let X1,X2, . . . , X10 denote a random sample of size 10 from a Poisson distribution with mean θ. Show that the critical region C defined by Σ101 xi ≥ 3 is a best critical region for testing H0 : θ = 0.1 against H1 : θ = 0.5. Determine, for this test, the significance level α and the power at θ = 0.5.

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