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n testing of hypothesis, ‘best critical region maximizes the power of the test’ this statement is

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Solution

The statement "In testing of hypothesis, ‘best critical region maximizes the power of the test’" is true.

Here's a step-by-step explanation:

  1. Hypothesis testing is a statistical method that is used in making statistical decisions using experimental data.

  2. The critical region of a hypothesis test is the set of all outcomes which cause the null hypothesis to be rejected in favor of the alternative hypothesis.

  3. The power of a statistical test is the probability that the test will reject the null hypothesis when the alternative hypothesis is true (i.e., the probability of not committing a Type II error, or making a false negative decision).

  4. The 'best' critical region is the one that maximizes this power. That is, it is the region that makes it most likely that we will correctly reject the null hypothesis when the alternative hypothesis is true.

  5. Therefore, the statement is true: the best critical region is the one that maximizes the power of the test.

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