ASB-4408 Wald Likelihood Ratio and Lagrange Multiplier Assignment Sample
- Subject Code : ASB-4408
- University :
- Subject Name: Financial econometrics
Wald, Likelihood Ratio and Lagrange Multiplier
Question B2
a. Describe briefly the three hypothesis testing procedures that are available under maximum likelihood estimation. Which is likely to be calculated in practice and why?
The three hypothesis testing procedures are Wald, Likelihood ratio and Lagrange Multiplier
The Wald test approximates the LR test, however with the favorable position that it just requires assessing one model.…
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