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The Likelihood Ratio Test

August 10, 2019 by

The likelihood ratio test is one of the few tests that are guaranteed to be optimal – that is, no other test can improve on the performance of the likelihood ratio test. In this lesson you will learn when the likelihood ratio test is applicable and how to form the likelihood ratio. An example illustrates the procedure and explains how to choose the threshold and evaluate test performance. The principles in this lesson will also prepare you to understand other hypothesis test methods.

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