Confidence Intervals and Upper Bounds for Small Signals in the Presence of Background Noise
Wolfgang A. Rolke, Angel M. Lopez
Abstract
We discuss a new method for setting limits on small signals in the presence of background noise. The method is based on a combination of a two dimensional confidence region and the large sample approximation to the likelihood ratio test statistic. It automatically quotes upper limits for small signals and two-sided confidence intervals for larger samples. We show that this method gives the correct coverage and also has good power.
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