This review provides a conceptual and technical survey of methods for parameter estimation of gravitational-wave signals in ground-based interferometers such as Laser Interferometer Gravitational-Wave Observatory (LIGO) and Virgo. We introduce the framework of Bayesian inference and provide an overview of models for the generation and detection of gravitational waves from compact binary mergers, focusing on the essential features that are observable in the signals. Within the traditional likelihood-based paradigm, we describe various approaches for enhancing the efficiency and robustness of parameter inference. This includes techniques for accelerating likelihood evaluations, such as heterodyne/relative binning, reduced-order quadrature, multibanding, and interpolation. We also cover methods to simplify the analysis to improve convergence, via reparameterization, importance sampling, and marginalization. We end with a discussion of recent developments in the application of likelihood-free (simulation-based) inference methods to gravitational-wave data analysis.
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