In: Statistics and Probability
A random sample of size n is to be used to test the null hypothesis that the parameter θ of an exponential population equals θ0 against the alternative that is does not equal θ0. (a) Find an expression for the likelihood ratio statistic. (b) Use the result in part (a) to show that the critical region of the likelihood ratio can be written as ye¯ −y/θ ¯ 0 ≤ K? .