Solution

ID: past-exam-of-the-statistics-course-of-the-university-of-oxford/2023/2/b/solution

The joint likelihood ratio in favor of the alternative is
It is increasing in the product, so the Neyman-Pearson lemma rejects for large product, equivalently small . Under , the transformation gives
Therefore the are independent exponential random variables of rate two, , and . An exact size- critical region is
Equivalently, reject when the geometric mean satisfies . The boundary distribution is continuous, so no randomization is needed here.

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