Parameter Estimation and Hypothesis Testing on Bivariate Log-Normal Regression Models

Abstract

This study aims to introduce a bivariate Log-Normal regression model and to develop a technique for parameter estimation and hypothesis testing. We term the model Bivariate Log-Normal Regression (BLNR). The estimation procedure is conducted by the standard Maximum Likelihood Estimation (MLE) employing the Newton-Raphson method. To perform hypothesis testing, we adapt the Maximum Likelihood Ratio Test (MLRT) for simultaneous testing with test statistics which, for large n, follows Chi-Square distribution with degrees of freedom p. In addition, the partial testing is derived from a central limit theorem which results in a Z-test statistic.


Keywords: parameter estimation, hypothesis testing, bivariate log, normal regression

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