Testing the independence of violations, Section 8.3.2 p. 155-6
December 27, 2017
My FM320 students Hongshen Chen, Yida Li and Yanfei Zhou pointed out that the discussion in Section 8.3.2 could be more clear, so I repeat the relevant parts of the section here with more clarifications.
We need to calculate the probabilities of two consecutive violations,
The maximum likelihood (ML) estimates are obtained by maximizing the likelihood function which is simple since the parameters are the ratios of the counts of the outcomes:
The likelihood function then is
Note in
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