A pivotal quantity $Q(X, \theta)$ can be used to construct a confidence interval. I was wondering if it can be used to construct a test statistic and rejection region? In simpler cases involving a simple null hypothesis it is obvious how to use a pivot to construct a test statistic and rejection region. What about composite null hypotheses?
Pivotal quantities are fundamental to the construction of test statistics, as they allow the statistic to not depend on parameters – for example, Student's t-statistic is for a normal distribution with unknown variance (and mean).