Abstract
A comparison between fitted and observed log likelihoods is used to study likelihood ratio statistics for both nested and nonnested hypothesis tests. A study of the geometry involved in the nonnested case clarifies the relationship between Cox's likelihood ratio test and the complete parametric Wald encompassing test of Mizon and Richard. Further it is shown why the asymptotic distribution of these test statistics is sometimes degenerate. Also, a new test statistic is proposed which combines the Cox and Mizon-Richard tests.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
