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GATE 2020 ST – Question 25

Testing of Hypotheses · Most Powerful and Uniformly Most Powerful Tests · 1 mark · Multiple choice

A sample of size n≥2 has density θ⁻¹e^(−x/θ), x>0, with θ∈{1,2}. Test H₀:θ=1 against H₁:θ=2. Which statement is true?

  1. The level-α likelihood-ratio test has the same critical region as the most powerful level-α test.
  2. The critical region is $\sum x_i<\tfrac12\chi^2_{2n,1-\alpha}$, where the quantile is the α percentile.
  3. The likelihood-ratio test does not exist.
  4. Its power is lower than that of the most powerful test at every level.

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Show answer and explanation

Correct answer: (A) The level-α likelihood-ratio test has the same critical region as the most powerful level-α test.

Explanation

For two simple hypotheses the Neyman–Pearson test is a likelihood-ratio test. Here L₂/L₁=2⁻ⁿexp(Σxi/2), increasing with the sum, so the most powerful rejection region uses large sums. Thus A. B instead rejects in the wrong lower tail.

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