In the case of the simple Normal model, Gosset has showed that for any n > 1:

(a) Explain why the result in (13.78), as it stands, is meaningless unless it is supplemented with the reasoning underlying it.

(b) Explain how interpreting (13.78) using factual reasoning yields a pivotal quantity, and using hypothetical reasoning yields a test statistic.

Transcribed Image Text:

S n == St(n-1), X=1X $ = (X;-X). (13.78)