When You Estimate Parameters by Finding Those That Make the Observed

question 25

Multiple Choice

When you estimate parameters by finding those that make the observed outcomes as likely as possible for a given model, you are using which method?

• A) Generalized method of moments
• B) Maximum likelihood estimation
• C) Instrumental variables
• D) Least absolute deviations

---

Definitions:

Tester Program

A program designed to test the functionality of other software components or modules, often for errors or bugs.

Tests

Procedures for evaluating the functionality, reliability, or performance of a system or component.

Method

A function associated with an object or class in object-oriented programming, used to perform specific actions or calculations.

Local Variables

Variables that are declared inside a function or block of code and are only accessible within that function or block.