Most powerful test for a Laplace location shift
ID: most-powerful-test-for-a-laplace-location-shift
For two unit-scale Laplace distributions with locations , the likelihood ratio is nondecreasing in , with constant tails and an increasing middle interval. Therefore an upper-tail statistical test of exact size of a statistical test is a most powerful test. Its cutoff is for , and otherwise. Under location , its statistical power is if , and otherwise. Constant likelihood ratio tails can make the most powerful test nonunique.
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