Week 4: MLE (09/12/2023)

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 the binomial logit and probit and how to perform one in R. ✅ We are also covering some details from last week’s materials and talking about Problem Set II.

Here are some key points:

• R will give us log-odds as coefficients. This is impossible to interpret substantively.
• Instead, we recommend odds ratio and predicted probabilities.
• In interpreting your results, always start by stating the positive/negative relationship.
• Goodness of fit tests: Wald, PRE, AIC and BIC, likelihood ratio test! These should never be your ultimate guide in assessing your models. However, they are super helpful.