where fi1 = mean of Y\ 1^2 = mean of Y2 o1 = standard deviation of Yi a2 = standard deviation of Y2 p = coefficient of correlation between Yi and Y2

4.2. By applying the second-order conditions for optimization (i.e., second-derivative test), show that the ML estimators of p1, f}2, and o2 obtained by solving Eqs. (9), (10), and (ii) do in fact maximize the likelihood function (4).

4.3. A random variable X follows the exponential distribution if it has the following probability density function (PDF):

f (X) = (1/0 )e-X/e for X > 0 = 0 elsewhere where 9 > 0 is the parameter of the distribution. Using the ML method, show that the ML estimator of 9 is 9 = YI Xi /n, where n is the sample size. That is, show that the ML estimator of 9 is the sample mean X.

Gujarati: Basic I I. Single-Equation I 5. Two-Variable I I © The McGraw-Hill

Econometrics, Fourth Regression Models Regression: Interval Companies, 2004 Edition Estimation and Hypothesis


Was this article helpful?

0 0
Rules Of The Rich And Wealthy

Rules Of The Rich And Wealthy

Learning About The Rules Of The Rich And Wealthy Can Have Amazing Benefits For Your Life And Success. Discover the hidden rules and beat the rich at their own game. The general population has a love / hate kinship with riches. They resent those who have it, but spend their total lives attempting to get it for themselves. The reason an immense majority of individuals never accumulate a substantial savings is because they don't comprehend the nature of money or how it works.

Get My Free Ebook

Post a comment