ABSTRACT
Throughout this book, statistical inference is based on the likelihood method that was introduced in Section 3.1.4 on page 70 in connection with one sample from the normal distribution. Here we give a brief summary of the method without reference to particular examples. In Section 11.1 basic concepts, such as the likelihood function, the maximum likelihood estimator, the likelihood ratio test, and the significance probability are discussed. Sometimes it is necessary to use approximations in order to calculate the significance probability of the likelihood ratio test and Section 11.3 reviews the relevant results. Finally, Section 11.2 contains remarks concerning concepts from general test theory that are often mentioned in the literature.
