ABSTRACT
Exercise 6.1. Let Y1, Y2, . . . , Yn constitute a random sample of size n from the continuous parent population
fY (y; θ) = (1 + θy)/2, − 1 < y < +1; − 1 < θ < +1.
(a) Derive the general structure of the rejection regionR of the most powerful (MP) test of size α for testing H0 : θ = 0 versus H1 : θ = 0.50. Is this MP test also the uniformly most powerful (UMP) test of H0 : θ = 0 versus H1 : θ > 0?
