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1. (Stock and Watson #11.10) Suppose that a random variable Y has th.pdf

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1. (Stock and Watson \#11.10) Suppose that a random variable Y has the following probability distribution: P(Y=1)=p, P(Y=2)=q and P(Y=3)=1Pq. A random sample of size n is drawn from this distribution and the random variables are denoted Y1,Y2,,Yn. a. Derive the likelihood function for the parameters p and q. b. Derive formulas for the MLE of p and q..

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1. (Stock and Watson #11.10) Suppose that a random variable Y has the following probability distribution: P(Y=1)=p, P(Y=2)=q and P(Y=3)=1Pq. A random sample of size n is drawn from this distribution and the random variables are denoted Y1,Y2,,Yn. a. Derive the likelihood function for the parameters p and q. b. Derive formulas for the MLE of p and q.

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1. (Stock and Watson #11.10) Suppose that a random variable Y has th.pdf

  • 1. 1. (Stock and Watson #11.10) Suppose that a random variable Y has the following probability distribution: P(Y=1)=p, P(Y=2)=q and P(Y=3)=1Pq. A random sample of size n is drawn from this distribution and the random variables are denoted Y1,Y2,,Yn. a. Derive the likelihood function for the parameters p and q. b. Derive formulas for the MLE of p and q.