Answer to Question #66695 in Economics for jhgjhgh

Question

Explain the method of maximum likelihood for estimating the value of a population
parameter

Answer 1

In statistics, maximum likelihood estimation (MLE) is a method of estimating the parameters of a statistical model given observations, by finding the parameter values that maximize the likelihood of making the observations given the parameters.
In general, for a fixed set of data and underlying statistical model, the method of maximum likelihood selects the set of values of the model parameters that maximizes the likelihood function. Intuitively, this maximizes the "agreement" of the selected model with the observed data, and for discrete random variables it indeed maximizes the probability of the observed data under the resulting distribution. Maximum likelihood estimation gives a unified approach to estimation, which is well-defined in the case of the normal distribution and many other problems.
Reference:
https://en.wikipedia.org/wiki/Maximum_likelihood_estimation