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

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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