How Effective Is Inverting a Test Statistic for New Confidence Intervals?

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Inverting a test statistic is a powerful method for constructing confidence intervals for unknown parameters, particularly the mean of a normal distribution with known variance. The discussion focuses on demonstrating this method through the creation of standard one-sided and two-sided confidence intervals, as well as exploring the potential for developing a new type of confidence interval that differs from traditional approaches. Participants express a need for resources to better understand the concept, particularly regarding the "red" part of the method, with one suggesting it might relate to pivotal intervals. The conversation reflects a sense of urgency and frustration among users seeking clarity on the topic. Overall, the thread highlights the complexity of constructing innovative confidence intervals using hypothesis testing.
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A very powerful method of construction of a confidence interval/set for an unknown parameter, the mean of a normal distribution for example, is to invert a family of hypotheses tests about that parameter. This project is firstly to demonstrate the understanding of this method by using it to construct the usual one-sided and two-sided confidence intervals for the unknown mean of a normal distribution with a known variance. But the prize is given if a new confidence interval can be constructed by using this method for the unknown mean of a normal distribution with a known variance.

Here, `A new confidence interval' means a confidence interval that is
different from the usual one-sided and two-sided confidence intervals
for the unknown mean of a normal distribution with a known variance.


Hi,

Can someone kindly explain a bit on the 'red' part.
I have tried to search for it, but nothing much related seem to come out.
You may not tell me what it is, all I need is some related resource ( section in a book, or a website, or an article? )

Thanks.
 
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Hi there,

I finally see something here.

Is there any possibility that the 'red' part is referering to the pivotal interval?

Thanks.

I am a bit desperate now.
 
slowly giving up on this one
 
First trick I learned this one a long time ago and have used it to entertain and amuse young kids. Ask your friend to write down a three-digit number without showing it to you. Then ask him or her to rearrange the digits to form a new three-digit number. After that, write whichever is the larger number above the other number, and then subtract the smaller from the larger, making sure that you don't see any of the numbers. Then ask the young "victim" to tell you any two of the digits of the...

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