Lecture 20 Maximum Likelihood Estimation

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The log-likelihood ratio test

uses likelihood to compare the fits of two probability models to the data

The log-likelihood curve

is a plot of the log- likelihood of all possible values of the parameter

The log-likelihood

is the natural log of the likelihood: ln L

The log-likelihood confidence interval

is the range of values for the parameter whose log-likelihood lies within X(2, 0.05, 1)/2 units of the maximum

The maximum likelihood estimate

is the value for which the probability of obtaining the observed data is highest

Likelihood

measures how well the data support a particular value for a parameter. It is the probability of obtaining the observed data if the parameter equaled that value


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