Suppose that Y₁, Y₂, ..., Y₁ is a random sample from a normal distribution with parameter mean 0 and variance 8, say N(0,0). If Mr Masela and Mr Sepuru desire to use 5% level of significance to test the null hypothesis Ho: 0 = 1 against alternative hypothesis H₁:0 > 1. i) Show that the uniformly most powerful test of their hypothesis rejects H, if Σ₁² ≥c, where c is a constant that solves the probability equation 0.05 = P1Y² ≥c|0 = 1). ii) What will be the value of c in part a) if n = 15.

MATLAB: An Introduction with Applications
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Suppose that Y₁, Y2...., Y₁ is a random sample from a normal distribution with parameter mean
0 and variance e, say N(0,0). If Mr Masela and Mr Sepuru desire to use 5% level of
significance to test the null hypothesis Ho: 0 = 1 against alternative hypothesis H₁:0 > 1.
i) Show that the uniformly most powerful test of their hypothesis rejects H, if
Σ1² ≥c, where c is a constant that solves the probability equation
0.05= P(Z1Y² ≥c|0 = 1).
ii) What will be the value of c in part a) if n = 15.
Transcribed Image Text:Suppose that Y₁, Y2...., Y₁ is a random sample from a normal distribution with parameter mean 0 and variance e, say N(0,0). If Mr Masela and Mr Sepuru desire to use 5% level of significance to test the null hypothesis Ho: 0 = 1 against alternative hypothesis H₁:0 > 1. i) Show that the uniformly most powerful test of their hypothesis rejects H, if Σ1² ≥c, where c is a constant that solves the probability equation 0.05= P(Z1Y² ≥c|0 = 1). ii) What will be the value of c in part a) if n = 15.
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