Abstract

The extension of parameter estimation from a bivariate linear functional relationship model (LFRM) to simultaneous LFRM for linear variables using the maximum likelihood estimation (MLE) method is explored in this paper. The covariance matrix of the parameter estimates is derived through the Fisher information matrix. A simulation study was done to investigate the performance of the parameter estimation. According to the simulation study, the estimated parameters have a small bias. The beauty of simultaneous LFRM lies in developing the model to study the relationship between more than two linear variables while considering error terms for all variables. The applicability of the proposed simultaneous model is demonstrated using wind speed, humidity, and temperature data from Butterworth and Melaka during the southwest monsoon season of 2020.

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