Log-likelihood ratio ($\log \Lambda =\log (L_1/L_0)$)

A log-likelihood ratio compares two likelihoods on an additive scale. For independent observations its increments add. Under distributions $P_0,P_1$ with suitable integrability and common support, $E_0[\log (d{P}_1/d{P}_0)]=-D(P_0\Vert P_1)\le 0$ and $E_1[\log (d{P}_1/d{P}_0)]=D(P_1\Vert P_0)\ge 0$, where $D$ is Kullback-Leibler divergence. This sign change motivates likelihood-based sequential monitoring.