Which of the following is not a property of MLE if there is no endogeneity?
A) Parameters are normally distributed.
B) Parameters are consistent.
C) Fitted values can be produced.
D) Coefficients minimize the sum of squared residuals.

Question

Quizplus · Accepted Answer

Maximum Likelihood Estimation (MLE) does not minimize the sum of squared residuals; this is a property of Ordinary Least Squares (OLS). MLE maximizes the likelihood function.

Which of the Following Is Not a Property of MLE