In the post Build the most power hypothesis test: Part 1 we introduced Neyman-Pearson criterion and Sufficient Statistic. In this post, using both of these ideas we will develop an optimum decision rule. To interactively generate likelihood functions and see the impact of choosing $latex \mathrm{P_{FA}}$, do not forget to try the Shiny app linked … Continue reading Build the most powerful hypothesis test: Part 2