Parameter Estimation and Evaluation Maximum Likelihood Estimation Maximum Likelihood Estimation Summary:The MLE procedure: Find the log-likelihood function,In L(X").For an IID random sample with population PDF/PMF f(x,0),we have In i(X")=>2 In f(X:,0). Solve for the FOC and find 0. Check the second order conditions(SOC)to ensure 0 is a global maximizer or at least a local maximizer. Parameter Estimation and Evaluation Introduction to Statistics and Econometrics April 21,2020 27/207Parameter Estimation and Evaluation Parameter Estimation and Evaluation Introduction to Statistics and Econometrics April 21, 2020 27/207 Maximum Likelihood Estimation Maximum Likelihood Estimation Summary: The MLE procedure: