The New Palgrave Dictionary of Economics

2018 Edition
| Editors: Macmillan Publishers Ltd

Likelihood

  • A. W. F. Edwards
Reference work entry
DOI: https://doi.org/10.1057/978-1-349-95189-5_874

Abstract

A statistical model for phenomena in the sciences or social sciences is a mathematical construct which associates a probability with each of the possible outcomes. When two different models are to be compared as explanations for the same observed outcome, or perhaps two variants of the same model differing only in the value of some adjustable parameter, the probability of obtaining this particular outcome can be calculated for each, and is then known as the likelihood for the hypothesis (or parameter value) given the particular outcome or ‘data’.

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Bibliography

  1. Cox, D.R., and D.V. Hinkley. 1974. Theoretical statistics. London: Chapman & Hall.CrossRefGoogle Scholar
  2. Edwards, A.W.F. 1972. Likelihood. Cambridge: University Press. Paperback edn, 1984.Google Scholar
  3. Edwards, A.W.F. 1974. The history of likelihood. International Statistical Review 42: 9–15.CrossRefGoogle Scholar
  4. Fisher, R.A. 1912. On an absolute criterion for fitting frequency curves. Messenger of Mathematics 41: 155–160.Google Scholar
  5. Fisher, R.A. 1921. On the ‘Probable Error’ of a coefficient of correlation deduced from a small sample. Metron 1(4): 3–32.Google Scholar

Copyright information

© Macmillan Publishers Ltd. 2018

Authors and Affiliations

  • A. W. F. Edwards
    • 1
  1. 1.