Solution

ID: past-exam-of-the-statistics-course-of-the-university-of-oxford/2021/2/b/ii/solution

For any fixed , the alternative-to-null likelihood ratio is
which is strictly increasing in for . Consequently the Neyman-Pearson lemma selects the same upper-tail ordering for every such alternative hypothesis. At the null hypothesis value,
Therefore
is a uniformly most powerful test of the required exact test size. Its power function is . At its statistical power is one, so including that boundary alternative preserves the conclusion.

New to topics? Read the docs here!