You have a single data-point consisting of a customer who was offered a price of $5...

 

Transcribed Image Text:

You have a single data-point consisting of a customer who was offered a price of $5 for the product and who declined the offer. You are considering two models: A: the probability of acceptance as a function of the price is r(p) = exp(5-p)/(1+ exp(5-p)) B: the probability of acceptance as a function of the price is r(p) = exp(4-p)/(1+ exp(4-p)) Which model maximizes the log-likelihood of the outcome in this data point? What is this log-likelihood? (take the log to the base 10, available on Excel as LOG(number), and approximate the result) O Model B maximizes the log-likelihood and the optimal value is -0.301 O Model B maximizes the log-likelihood and the optimal value is -0.136 O Model A maximizes the log-likelihood and the optimal value is -0.301 O Model B maximizes the log-likelihood and the optimal value is -0.5703 You have a single data-point consisting of a customer who was offered a price of $5 for the product and who declined the offer. You are considering two models: A: the probability of acceptance as a function of the price is r(p) = exp(5-p)/(1+ exp(5-p)) B: the probability of acceptance as a function of the price is r(p) = exp(4-p)/(1+ exp(4-p)) Which model maximizes the log-likelihood of the outcome in this data point? What is this log-likelihood? (take the log to the base 10, available on Excel as LOG(number), and approximate the result) O Model B maximizes the log-likelihood and the optimal value is -0.301 O Model B maximizes the log-likelihood and the optimal value is -0.136 O Model A maximizes the log-likelihood and the optimal value is -0.301 O Model B maximizes the log-likelihood and the optimal value is -0.5703

Answer rating: 100% (QA)

ANS WER Model A maxim izes the log like lihood and the optimal value is 0 3... View the full answer