Abstract
A statistical hypothesis is an assumption concerning the distribution of random variables. For example, let X1,…,Xn be independent and identically distributed random variables. A typical statistical hypothesis could then be that these variables are Poisson distributed with mean 2. Such a hypothesis is called a simple hypothesis because it completely specifies the distribution of the random variables. A different hypothesis would be that the random variables are normally distributed with mean 0 and unknown variance σ2. Such a hypothesis is said to be composite, since a class of distributions is specified.
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