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Maximum Likelihood Estimation
Maximum Likelihood Estimation Maximum Likelihood Estimation (MLE) Definition: MLE finds parameter values that maximize the probability of observing the data Key concepts: The Likelihood function \[ L(\theta | x) = \prod_{i=1}^n f(x_i | \theta) \] Log-likelihood function \[ l(\theta | x) = \sum_{i=1}^n log f(x_i | \theta) \] Maximum likelihood e...
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Lecture 5: Review of Probability Distribution Functions
Bernoulli Distribution Consider a coin toss. The outcome of the coin toss is a random variable \(y\) that takes on two possible distinct outcomes: Heads or Tails. An example to a Bernoulli experiment: Imagine you are bout to toss a coin 10 times in a row and you wonder how likely it is that you will end up getting Heads 5 times out of those 10 toss...
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Lecture 5
Binary Choice Models in Economics Applications, Estimation, and Interpretation Why Binary Choice Models? Many economic decisions are binary in nature: Labor force participation (Yes/No) Purchase decisions (Buy/Not Buy) Default on loans (Default/Not Default) Migration decisions (Move/Stay) Labor Economics Employment decisions Job search outcomes...
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Option 1: Crime Survey
This document outlines all the assessed homework assignments for EC3133. Your first assessed assignment is Graded Homework 1A. To complete Graded Homework 1A, you are given two options. Each option involves exactly the same amount of work. The only difference is which dataset you use. If you choose Option 1, you will be using the Crime Survey for E...
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Option 2: Covid-19 Survey
This document outlines all the assessed homework assignments for EC3133. Your first assessed assignment is Graded Homework 1A. To complete Graded Homework 1A, you are given two options. Each option involves exactly the same amount of work. The only difference is which dataset you use. If you choose Option 1, you will be using the Crime Survey for E...
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Tutorial R Markdown
R Markdown is a powerful tool for creating dynamic documents that integrate code, text, and visualizations as well as for creating reproducible reports. By combining text, code, and output in a single document, you can effectively communicate your data analysis results. Step 1: Install R Markdown Ensure you have R and RStudio installed. Then, inst...
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