You want to estimate the percentage of a population which has a wage below $15 an hour.

Question:

You consider three approaches.

(a) Estimate a normal distribution by MLE. Use the percentage of the fitted normal distribution below

$15.

(b) Estimate a log-normal distribution by MLE. Use the percentage of the fitted normal distribution below $15.

(c) Estimate the empirical distribution function at $15. Use the EDF estimate.

Which method do you advocate. Why?

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Probability And Statistics For Economists

ISBN: 9780691235943

1st Edition

Authors: Bruce Hansen

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Question Posted: Sep 23, 2024 07:01 AM

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You want to estimate the percentage of a population which has a wage below $15 an hour.

Question:

Step by Step Answer:

Probability And Statistics For Economists

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