STATISTICAL INFERENCE FOR CATEGORICAL DATA

The choice of distribution for the response variable is just one of the steps of data analysis. In
practice, that distribution has unknown parameter values. We will first review the methods of
using sample data to make inferences about the parameters.

Likelihood Functions and Maximum Likelihood Estimation

Wald–Likelihood Ratio–Score Test Triad :

Three standard ways exist to use the likelihood function to perform large-sample inference for a
significance test of a null hypothesis
Wald test:

Likelihood Ratio Test:

Score Test:

Construction of confidence intervals:

The likelihood ratio based confidence

to moderate n
STATISTICAL INFERENCE FOR BINOMIAL PARAMETERS :

Tests about a Binomial Parameter:

The Wald statistic is

Confidence Intervals for a Binomial Parameter :

The Wald test statistic gives the Confidence Interval for π0 as:
This Confidence Interval for π0 is:

This interval has much better performance than the Wald interval.

The likelihood-ratio-based confidence interval is more complex computationally.

EXAMPLE:

In a survey, the students in a university were given a questionnaire, which

consisted of one question whether the student is vegetarian or not. Out of n = 25
students, none was vegetarian. That is, y = number of successes = number of
vegetarian students = 0.

Suppose we want to construct 95% C. I. for π.

Whereas, the 95% C. I. for π based on Score statistic will be: (0.0 , 0.1333) which
is more sensible, because

is equal to (0.0 , 0.074).