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Q33Section B (Section B)33 of 60

Power function of a one-sided normal LRT

Let X1,X2,…,XnX_{1},X_{2},…,X_{n} be a random sample from N(θ,1)N(\theta,1), where θ∈(−∞,∞)\theta\in(-\infty,\infty) is unknown. Consider the problem of testing H0:θ≤0H_{0}:\theta\le 0 against H1:θ>0H_{1}:\theta>0. Let β(θ)\beta(\theta) denote the power function of the likelihood ratio test of size α\alpha (0<α<10<\alpha<1) for testing H0H_{0} against H1H_{1}. Then, which of the following statements is/are TRUE?

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