An Alternative to Student's t-Test for Problems With Indifference Zones
Penn collection
Degree type
Discipline
Subject
indifference zone
confidence intervals
admissibility
Statistics and Probability
Funder
Grant number
License
Copyright date
Distributor
Related resources
Author
Contributor
Abstract
Consider a sample from a normal population with mean, μ, and variance unknown. Suppose it is desired to test H0:μ ≤ μ0 versus H1:μ ≥ μ1, with the region HI1:μ0 < μ < μ1 being a (nonempty) indifference zone. It is shown that the usual Student's t-test is inadmissible for this problem. An alternative test is proposed. The two sided problem with indifference region is also discussed. By contrast with the above result, the usual Student's t-test is admissible here. However the two sided version of the alternative test mentioned above does offer some practical advantages relative to the two sided t-test. A 3-decision version of the two sided problem is also discussed. Here the t-test is inadmissible, and is dominated by the appropriate version of the alternative test. The results concerning tests are also reformulated as results about confidence procedures.