2.I.5I

Statistical Modelling | Part II, 2006

Let Y1,,YnY_{1}, \ldots, Y_{n} be independent Poisson random variables with means μ1,,μn\mu_{1}, \ldots, \mu_{n}, for i=1,,ni=1, \ldots, n, where log(μi)=βxi\log \left(\mu_{i}\right)=\beta x_{i}, for some known constants xix_{i} and an unknown parameter β\beta. Find the log-likelihood for β\beta.

By first computing the first and second derivatives of the log-likelihood for β\beta, explain the algorithm you would use to find the maximum likelihood estimator, β^\hat{\beta}.

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