Suppose again, as in Exercise 9, that a random sample of 10 observations is taken from the normal distribution with unknown mean and unknown variance 2, but suppose now that the following hypotheses are to be tested at the level of significance 0 05 H0 2 4, H1 2 4 Suppose that the null hypothesis H...

When 2 4 S 2 n 4 has the 2 distrib ...

Suppose again, as in Exercise 9, that a random sample of 10 observations is taken from the

Question:

Suppose again, as in Exercise 9, that a random sample of 10 observations is taken from the normal with unknown mean μ and unknown variance σ2, but suppose now that the following hypotheses are to be tested at the level of significance 0.05:
H0: σ2 = 4,
H1: σ2 = 4.
Suppose that the null hypothesis H0 is to be rejected if either S2n ≤ c1 or S2n ≥ c2, where the constants c1 and c2 are to be chosen so that, when the hypothesis H0 is true,
Pr(S2n ≤ c1) = Pr(S2n ≥ c2) = 0.025.
Determine the values of c1 and c2.
Distribution
The word "distribution" has several meanings in the financial world, most of them pertaining to the payment of assets from a fund, account, or individual security to an investor or beneficiary. Retirement account distributions are among the most...