Parameter Estimation and Evaluation Maximum Likelihood Estimation Maximum Likelihood Estimation 2.0e-57 a plot for MLE when 0 is a scalar parameter. Remarks: 1.8e571 1.5e-57 likelihood function 1.3e57 1.0e-571 7.5e-58 5.0e58 2.5058 0. 0.6 0.7 0.8 0.9 61.0 1.1 1.2 1.3 1.4 1.5 MLE is the parameter estimate which makes the ob- served data x"most likely to occur.In other words,by choosing a parameter estimate O(x"),MLE maximizes the probability that X=x",that is,the probability that Xm takes the value of the observed data x". Parameter Estimation and Evaluation Introduction to Statistics and Econometrics April 21,2020 21/207Parameter Estimation and Evaluation Parameter Estimation and Evaluation Introduction to Statistics and Econometrics April 21, 2020 21/207 Maximum Likelihood Estimation Maximum Likelihood Estimation Remarks: