When you estimate parameters by finding those that make the observed outcomes as likely as possible for a given model, you are using which method?
A) Generalized method of moments
B) Maximum likelihood estimation
C) Instrumental variables
D) Least absolute deviations

Question

Quizplus · Accepted Answer

Maximum likelihood estimation is the method of estimating parameters by finding those that maximize the likelihood function, which is the probability of observing the given data under the assumed model. It is a commonly used method in statistical modeling and inference.

When You Estimate Parameters by Finding Those That Make the Observed