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Question 8. More Simple Hypothesis Let X be exponentially distributed with parameter ?. Assume you are sannpling a single obser- vation, X, and wish to carry out a simple hypothesis test with H0 : ?-5.0 and Hi : ?-2.0. Your test rejects Ho if X > T. (a) Plot the pdfs for the two distributions (two values of A), above each other. Argue why it is sensible to reject when X >T (b) Assume ? = 0.75. Calculate the ? and ? (the probabilities of type-l and type-II errors respectively). (c) What would you use for the value of ? if you wish for a to be 0.05. In this case what is ?? (d) What would you use for the value of ? if you wish to have an equal value of a and ß?

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