Suppose that Y_i = E_j-1(T_ij * B_j) + ε_i, where ε_i are i.i.d. distributed from N(0,σ^2). Write out the likelihood for the data and show that it is equivalent to using ordinary least squares.
Added by Jose Miguel H.
Step 1
Likelihood function: The likelihood function is given by the joint probability density function of the data, assuming that the errors are normally distributed with mean 0 and variance σ^2. In this case, we have: L(β, σ^2) = f(Y; | β, σ^2) = (2πσ^2)-n/2 Show more…
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