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Parameter Estimation and Evaluation Maximum Likelihood Estimation Maximum Likelihood Estimation It may be emphasized that the zeros of the first deriva- tives only locate extreme points in the interior of the domain of a function.If the extrema occur on the bound- ary,the first derivative may not be zero.Thus,the boundary must be checked separately for extrema.This can be done by using the Kuhn-Tucker theorem. It is possible that the FOC cannot deliver a closed form solution for 0.In this case,numerical solutions for 0 will be needed. Parameter Estimation and Evaluation Introduction to Statistics and Econometrics April 21,2020 26/207Parameter Estimation and Evaluation Parameter Estimation and Evaluation Introduction to Statistics and Econometrics April 21, 2020 26/207 Maximum Likelihood Estimation Maximum Likelihood Estimation
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