Solution

ID: past-exam-of-the-mathematics-course-of-the-university-of-cambridge/2023/ib/paper-3/18h/b/i/solution

The likelihood ratio of the simple alternative to the simple null is
This is a strictly increasing function of . By the Neyman-Pearson lemma, the most powerful test therefore rejects for . The logistic distribution has
The size condition gives
Because the distribution is continuous, no boundary randomization is needed. The most powerful size- test is therefore

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