The Concept of Stringency for Test Comparison: The Case of a Cauchy Location Parameter

Year 2017, Volume: 9 Issue: 1, 1 - 20, 03.04.2017

Atiq Rehman Arif Zaman Asad Zaman

https://doi.org/10.33818/ier.319909

Cited By: 2

Abstract

Strategies for comparison of alternative tests do not receive much attention in
econometrics. The purpose of this paper is to introduce the concept of stringency and
illustrate it in the context of a very simple hypothesis testing problem. Systematic use of
this concept can be very helpful in evaluating relative performance of tests. 

Keywords

Power Envelope, Location Parameter, Stringent Test

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