(Requires advanced material)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.

Question

Quizplus · Accepted Answer

Maximum likelihood estimation maximizes the likelihood function, which is the probability of observing the data given the model parameters.

(Requires Advanced Material)Maximum Likelihood Estimation Yields the Values of the Coefficients