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Floating reference hypothesis modules

For a floating reference hypotheses, the J function is

$\displaystyle J({\bf x};H_0$$\displaystyle \mbox{\small$({\bf z})$}$$\displaystyle ,T) = {p_x({\bf x}\vert H_0\mbox{\small$({\bf z})$}) \over p_z({\bf z}\vert H_0\mbox{\small$({\bf z})$})}.$ (2.26)

Modules using a floating reference are usually designed to position the reference hypothesis at the peak of the denominator PDF, which is approximated by the central limit theorem (CLT).