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The Maximum Likelihood Method (MLM) Objective ,[object Object]
Who is the daddy? ,[object Object]
Who’s the daddy? ,[object Object],A B C D
The Logic of  Maximum Likelihood ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Did you guess… ,[object Object],[object Object],[object Object],[object Object],[object Object]
An Easier Problem ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Maximum Likelihood Method ,[object Object],[object Object],[object Object],[object Object],[object Object]
What is p, for different values of  π ?   ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Most likely proportion
MLM: How it works ,[object Object],[object Object],[object Object],[object Object]
A MLM Estimation Problem: Defective Handbags ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Solution
Solution Continued
Solution Continued

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Similar a Here are the steps to solve this problem:1. The sampling follows a binomial distribution since we are sampling a fixed number (7) of items with a fixed probability of success/failure (defective vs not defective) and each trial is independent.2. The two hypotheses are: H1: Defective proportion is 10% H2: Defective proportion is 30% 3. The likelihoods are: H1: Binomial(7,0.1) probability of 2 defects = 0.1296 H2: Binomial(7,0.3) probability of 2 defects = 0.2430 4. Hypothesis H2 has a higher likelihood of

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Here are the steps to solve this problem:1. The sampling follows a binomial distribution since we are sampling a fixed number (7) of items with a fixed probability of success/failure (defective vs not defective) and each trial is independent.2. The two hypotheses are: H1: Defective proportion is 10% H2: Defective proportion is 30% 3. The likelihoods are: H1: Binomial(7,0.1) probability of 2 defects = 0.1296 H2: Binomial(7,0.3) probability of 2 defects = 0.2430 4. Hypothesis H2 has a higher likelihood of