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Mathematics, 17.06.2020 17:57 YoEsMyles3115
g where C>0 is a constant known as the threshold that you will choose in designing the test. (In the previous problem, C was chosen to be 0.25.) On observing the data set, if ψ=1, you will reject H0. If ψ=0, then you will fail to reject H0. Suppose that indeed μ=0. Then P(ψC=1), the probability of rejecting H0, quantifies how likely we are to make the error of rejecting H0 even though H0 holds. Under the assumption that H0:μ=0, for which value of C is P(ψC=1) likely the largest? C=0.01 C=0.1 C=0.5 C=1.0
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