The Maximum Likelihood Estimate (MLE) Can Be Determined by Doing

question 7

Multiple Choice

The maximum likelihood estimate (MLE) can be determined by doing which of the following?

• A) Across the whole range of possible parameter values, we calculate the likelihood and the MLE is the largest probability value.
• B) Across the whole range of possible parameter values, we calculate the likelihood and the MLE is the smallest probability value.
• C) Across the whole range of possible parameter values, we calculate the log-likelihood and the MLE is the parameter that gives the largest value.
• D) Across the whole range of possible parameter values, we calculate the log-likelihood and the MLE is the parameter that gives the smallest value.

---

Definitions:

Regression Method

A statistical technique used to model and analyze the relationships between variables and how one variable's change affects another.

Industrial Lathe Sales

The commercial activity of buying and selling industrial lathes, which are machines used for shaping metal, wood, or other materials by holding and turning them while applying a cutting tool.

Exponential Smoothing Model

An approach to predict future values in a univariate data set by assigning diminishing exponential weights to older data points.

Root Mean Square Error

A measure of the differences between values predicted by a model or an estimator and the values observed, serving as a standard way to measure the error of a model.