what is best critical region in statistical inference
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A critical region, also known as the rejection region, is a set of values for the test statistic for which the null hypothesis is rejected. i.e. if the observed test statistic is in the critical region then we reject the null hypothesis and accept the alternative hypothesis.
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The “best” critical region is one that minimizes the probability of making a Type I or a Type II error. In other words, the UMPCR is the region that gives the smallest chance of making a Type I or II error. It is also the region that gives a UMP test the largest (or equally largest) power function.
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