Question: MAKE USE OF THR NOTES PROVIDED BELOW IN ORDER TO ANSWER THESE 2 QUESTIONS. QUESTION 1 [10] Show that an approximation to the Wald statistic

MAKE USE OF THR NOTES PROVIDED BELOW IN ORDER TO ANSWER THESE 2 QUESTIONS. QUESTION 1 [10] Show that an approximation to the Wald statistic can be developed from the second-order Taylor expansion of the log-likelihood, /(8,) as follow. For this problem, focus on just one of the regression parameters, say Bj. (1) Write the first three terms of the Taylor series expansion of /(8,, ;) expanded about 3. (2) (2) Rearrange to show that the Wald statistic is approximately equal to 2(((#,, y) -((3,, y)]), and hence show that the Wald statistic is approximately equivalent to a likelihood ratio test when 3 - 8, is small. (8)
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