2. Generate 25 observations from an N(0.4, 1) density and use the following code to obtain the...
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2. Generate 25 observations from an N(0.4, 1) density and use the following code to obtain the probability that the likelihood ratio is under 1 (i.e. the deviance is zero) when H0:
μ = 0 and the alternative hypothesis is general. The lines to obtain these probabilities need to be added. Following Aitkin et al. (2005) the code uses flat priors on the parameters.\
How is inference affected if a just-proper prior is assumed for the precision, e.g. 1/σ2 ∼
Ga(1, 0.001)?
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