Suppose that two models are non-nested and there are (N=200) observations. For model 1 , the number

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Suppose that two models are non-nested and there are $N=200$ observations. For model 1 , the number of parameters $q=10$ and $\ln L=-400$. For model 3 , $q=10$ and $\ln L=-380$.

(a) Which model is favored using AIC?

(b) Which model is favored using $\mathrm{BIC}$ ?

(c) Which model would be favored if the models were actually nested and we used a likelihood ratio test at level 0.05 ?

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Microeconometrics Methods And Applications

ISBN: 9780521848053

1st Edition

Authors: A.Colin Cameron, Pravin K. Trivedi

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Question Posted: May 19, 2024 05:00 AM

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Suppose that two models are non-nested and there are (N=200) observations. For model 1 , the number

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Microeconometrics Methods And Applications

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