ABSTRACT
The usual method to estimate the values of the regression coefficients and the intercept and slope variances is the maximum likelihood method. This chapter gives a nontechnical explanation of this estimation method, to enable analysts to make informed decisions on the estimation options presented by present software. Some alternatives to maximum likelihood estimation are briefly discussed. Recent developments, such as bootstrapping and Bayesian estimation methods, are also briefly introduced in this chapter. In addition, these are explained in more detail in Chapter 13. Finally, this chapter describes some procedures that can be used to test hypotheses about specific parameters.
