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 Cij denote the cost incurred in deciding in favor of hypothesis Hi when hypothesis Hj 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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