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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Related Book For
Microeconometrics Methods And Applications
ISBN: 9780521848053
1st Edition
Authors: A.Colin Cameron, Pravin K. Trivedi
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