Week 3: Overview of the Maximum Likelihood Estimator (09/05/2023)

Ozlem Tuncel

otuncelgurlek1@gsu.edu

⚠️ CAUTION: DO NOT SOLELY RELY ON MY NOTES. THERE MIGHT BE TYPOS AND MISTAKES. ALWAYS TAKE YOUR NOTES!

✔️ The goal of this week is to learn more about MLE.

Here are some key points:

• We started reviewing last week’s OLS assumptions and our homework. Normal-QQ plot is used for normality. Predicted vs fitted values plot shows linearity (line) and heteroskedasticty (dots).
• If we have bunch of ``control’’ variables, I prefer to use beta prime and matrix $X$ instead of specifying every independent variables with betas.
• What does distributions do? It represents our observations and how they are distributed. It help us in model decisions.