Show that the likelihood ratio test of 395 still holds, Project Management

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Show that the likelihood ratio test of 395 still holds

In this problem we generalize the likelihood ratio test for simple binary hypotheses by including costs incurred in the decision-making process.

Let C_ijdenote the cost incurred in deciding in favor of hypothesis H_iwhen hypothesis H_j is true.

Hence, show that the likelihood ratio test of (3.95) still holds, except for the fact that the threshold of the test is now defined by

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Project Management: Show that the likelihood ratio test of 395 still holds

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Project Management: Show that the likelihood ratio test of 395 still holds

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