Sprenger, Jan (2012) Testing a precise null hypothesis: the case of Lindley's Paradox. In: [2012] Philosophy of Science Assoc. 23rd Biennial Mtg (San Diego, CA) > PSA 2012 Contributed Papers.
Abstract
The interpretation of tests of a point null hypothesis against an unspecified alternative is a classical and yet unresolved issue in statistical methodology. This paper approaches the problem from the perspective of Lindley's Paradox: the divergence of Bayesian and frequentist inference in hypothesis tests with large sample size. I contend that the standard approaches in both frameworks fail to resolve the paradox. As an alternative, I suggest the Bayesian Reference Criterion: (i) it targets the predictive performance of the null hypothesis in future experiments; (ii) it provides a proper decision-theoretic model for testing a point null hypothesis and (iii) it convincingly accounts for Lindley's Paradox.
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