Question
Consider a random sample from the distribution f(x) = 0x2, x > 0. We wish to test Ho: 0 < 0 vs H :
Consider a random sample from the distribution f(x) = 0x2, x > 0. We wish to test Ho: 0 < 0 vs H : 0>00. (a) Show that this distribution is MLR in the sufficient statistic T. (b) Find the form of the UMP size-a test. (c) Express a formula for to in terms of a, n, and 00.
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An Introduction to the Mathematics of Financial Derivatives
Authors: Ali Hirsa, Salih N. Neftci
3rd edition
012384682X, 978-0123846822
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