In: Statistics and Probability
Two iid observations Y1,Y2 are to be drawn from a Uniform [0,θ] distribution. We wish to test the hypothesis H0: θ = 1 vs. H1: θ > 1 by rejecting H0 if Y1 + Y2 ≥ k. Find the value of k which yields a 0.05 significance level for this test and calculate the power of this test for θ = 2.