Maximum likelihood estimation yields the values of the coefficients that

A) minimize the sum of squared prediction errors.
B) maximize the likelihood function.
C) come from a probability distribution and hence have to be positive.
D) are typically larger than those from OLS estimation.


Answer: B) maximize the likelihood function.

Economics

You might also like to view...

If the marginal rate of transformation is constant what can be said of the shape of the production possibilities frontier and why?

What will be an ideal response?

Economics

If two large firms from different industries merge,

a. industry concentration rises b. industry concentration falls c. the total assets of the top 200 firms in the country will stay the same d. industry concentration rises in one market and falls in the other e. industry concentration is not affected

Economics

Changes in reserve requirements are made within legal limits by

a. the Federal Open Market Committee. b. Federal Reserve Banks. c. member banks of the Fed. d. the Board of Governors.

Economics

An increase in buyers' incomes

a. increases the quantity demanded of a good b. decreases the quantity demanded of a good c. increases the demand for a normal good d. increases the demand for an inferior good e. decreases the quantity demanded of a normal good

Economics