Answer to Question #243371 in Economics for Detch

Question

Let x1, x2, ...xn be a random sample of the size n from normal distribution with mean and variance. Find the maximim likelihood estimator

Answer 1

Maximum likelihood estimation is a popular statistical technique that is used to create a statistical model from data and provide estimates of model parameters.

For a fixed dataset and a basic probabilistic model, using the maximum likelihood method, we will obtain model parameter values ​​that make the data “closer” to real data. Maximum likelihood estimation provides a unique and simple way to determine solutions in the case of a normal distribution.

The maximum likelihood estimation method is used for a wide range of statistical models, including:

linear models and generalized linear models;

factor analysis;

modeling of structural equations;

many situations, within the framework of testing the hypothesis and the confidence interval of the formation;

discrete selection models.