Use the result in part b) to explain how to determine a rejection region

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Practice Problems

Question 5:

Let X1, X2,..., Xn, be iid observations from Poisson(lambda), i.e.,

(hint: you may use the mgf given in the appendix table)

c) Use the result in part b) to explain how to determine a rejection region for a test at level a

Hint

In the MGF, first moment- E(X), second moment - E(X²), third moment - E(X³). For the n-th moment it is computed as E(X^n). Mean (x) = E(x). In order for the MGF to be existent, the expected value E(e^tx) ought to exist...

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