The Power of Confidence Intervals
C. Giunti, M. Laveder
Abstract
We connect the power of Confidence Intervals in different Frequentist methods to their reliability. We show that in the case of a bounded parameter a biased method which near the boundary has large power in testing the parameter against larger alternatives and small power in testing the parameter against smaller alternatives is desirable. Considering the recently proposed methods with correct coverage, we show that the Maximum Likelihood Estimator method has optimal bias.
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