Solution

ID: past-exam-of-the-statistics-course-of-the-university-of-oxford/2021/1/b/i/solution

Put , , and . The two independent statistical samples give the joint likelihood function
The unrestricted maximum-likelihood estimators are and . Under the null hypothesis, the common statistical parameter has log-likelihood function , maximized at . With the likelihood ratio defined as the null maximum divided by the unrestricted maximum,
The statistic in the paper is , since both original sums of natural logarithms are negative. Hence
It has maximum one at , corresponding to equal fitted rates. This is the likelihood-ratio test for equality of beta shape parameters.

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