Inferential Statisticshard
0:00.0

In a clinical trial, the treatment effect Δ\Delta is modeled using a maximum likelihood estimator Δ^\hat{\Delta}. A researcher notes that the Wald statistic W=Δ^2Var^(Δ^)W = \frac{\hat{\Delta}^2}{\widehat{Var}(\hat{\Delta})} behaves unexpectedly when Δ^\hat{\Delta} is near the boundary of the parameter space. Which phenomenon describes this behavior where the Wald statistic decreases as the estimate moves further from the null, potentially leading to a failure to reject H0H_0?