Which of the Following Statements Are Needed in Constructing the Likelihood

question 82

Multiple Choice

Which of the following statements are needed in constructing the likelihood ratio test?

• A) Finding the largest value of the likelihood for any \(\theta \text { in } \Omega _ { 0 }\)
• (by finding the maximum
• Likelihood estimate within \(\Omega _ { 0 }\)
• And substituting back into the likelihood function).
• B) Find the largest value of the likelihood for any \(\theta \text { in } \Omega _ { \mathrm { 0 } }\)
• C) Forming the ratio \(\lambda \left( x _ { 1 } , \ldots , \ldots , x _ { n } \right)\)
• = maximum likelihood for \(\theta \text { in } \Omega _ { 0 } /\)
• Maximum likelihood for \(\theta \text { in } \Omega _ { \mathrm { 0 } }\)
• D) All of the above statements are needed.
• E) Only statements A and B are needed.

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Definitions:

Net Worth

The total assets minus total liabilities of an individual or entity, representing the value of their economic position.

Consumption

The use of goods and services by households or individuals, representing the final use of produced goods and services in an economy.

Horizontal Equity

is a principle in taxation that mandates taxpayers with similar income or assets should be taxed at the same rate.

Tax Burdens

Tax burdens refer to the economic impact of taxes on individuals or corporations, often measured as a percentage of income or profits.