I encountered this problem:
Suppose $Y$ has the following PDF $$f(y)=\frac c{(1+y)^2}\cdot I(0\le y\le \theta),\quad\theta>0.$$ A single value $y$ is observed from the distribution.
Derive a formula for a suitable $p$-value for testing the null hypothesis $H_0:\theta = k$ where $k$ is a specified positive constant, against the alternative hypothesis $H_1: \theta>k$.
The answer turned out to be $p=P(Y>y)$.
The reason went like:
If $y$ is large then this is evidence in favour of the alternative hypothesis.
However, according to a post I just read, smaller $p$-values are in favour of $H_0$. In this design, $p$ being smaller means $y$ being larger, which is evidence in favour of $H_1$ i.e. against $H_0$.
What goes wrong?