Parameter Estimation and Evaluation Population and Distribution Model Population and Distribution Model Suppose T is the duration from a population with PDF f(t) and CDF F(t).Then the survival function is S(t)=P(T>t)=1-F(t), and the hazard rate P(t<T:≤t+oT:>t) 入(t) lim 6→0+ f(t) S(t) Intuitively,the hazard rate A(t)is the instantaneous proba- bility that an event of interest will end at time t given that it has lasted for period t.Note that the specification of A(t) is equivalent to a specification of PDF f(t),but A(t)is more interpretable from an economic point of view. Parameter Estimation and Evaluation Introduction to Statistics and Econometrics April 21,2020 11/207Parameter Estimation and Evaluation Parameter Estimation and Evaluation Introduction to Statistics and Econometrics April 21, 2020 11/207 Population and Distribution Model Population and Distribution Model