RAO–LOVRIC THEOREM: Reforming Inference Through Contextual Nulls

The RAO–LOVRIC Theorem emerges as a powerful response to a foundational issue in statistical methodology: the unrealistic use of point-null hypotheses, especially in the context of the replication crisis in science. This theorem refutes the conventional framework where null hypotheses are treated as exact, implausible statements (e.g., \( H_0: \mu = 0 \)), and instead advocates for context-aware nulls rooted in real-world decision-making.

Through extensive theoretical critique and philosophical reflection, the article argues that the act of rejecting or retaining a null hypothesis should be grounded in practical relevance, not just mathematical formality. The authors emphasize the vacuity of assigning probability mass to sharp nulls in continuous settings and propose a framework where interval nulls—such as \( H_0: |\mu - \mu_0| \leq \delta \)—better reflect contextual significance.

The theorem directly addresses the conflict between Bayesian and frequentist perspectives, including a resolution to the Jeffreys–Lindley Paradox. It suggests that many paradoxes in modern inference dissolve once point-null hypotheses are abandoned. The article reinforces that the conceptual foundations of inference must shift toward effect size, contextual evidence, and reproducibility.

Drawing from a lineage that spans from Popper to Newton, the theorem is presented not merely as a technical result but as a philosophical correction. It argues that science advances not through idealized logic but through accumulation of meaningful, replicable results. This aligns the theorem with broader reform movements aimed at restoring trust in empirical research.

In closing, the RAO–LOVRIC Theorem does not just critique old norms—it builds a path forward. By promoting the use of interval-based nulls, it lays the groundwork for more honest, transparent, and scientifically grounded hypothesis testing. For full exposition, including mathematical and historical insights, consult the full article in the International Encyclopedia of Statistical Science.