A note on the local power of the LR, Wald, score and gradient tests
A note on the local power of the LR, Wald, score and gradient tests
This paper examines the local power of the likelihood ratio, Wald, score and gradient tests under the presence of a scalar parameter, ϕ say, that is orthogonal to the remaining parameters. We show that some of the coefficients that define the local powers remain unchanged regardless of whether ϕ is …