The sign test can be extended to a test of hypotheses about an arbitrary quantile of a

Question:

The sign test can be extended to a test of hypotheses about an arbitrary quantile of a distribution rather than just the median. Let θp be the p quantile of a distribution, and suppose that X1, . . . , Xn form an i.i.d. sample from this distribution.
a.
Let b be an arbitrary number. Explain how to construct a version of the sign test for the hypotheses
H0: θp = b,
H1: θp ≠ b,
at level of significance α0. (Construct an equal-tailed test if you wish.)
b. Show how to use this version of the sign test to form a coefficient 1− α0 confidence interval for θp. 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...
Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Probability And Statistics

ISBN: 9780321500465

4th Edition

Authors: Morris H. DeGroot, Mark J. Schervish

Question Posted: