# Is it correct to compute LR stat after maximising likelihood with bounds?

I use grid search with bounds for example lb=[ 1 1 1 1 1 1]'/1000; ub=[10 10 10 10 10 20]' but it is computationally difficult so it checks 2 points only. Thus i obtain boundary solution consisting from elements of lb and ub. Correct to test hypothesis x2=0 with LR stat?

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If the grid separation is small then the point at which the likelihood ratio is maximized is close to the identified point and you will get an accurate result. But if the grid is crude the identified point is not accurate and it would not be appropriate to use it. –  Michael Chernick Jul 1 '12 at 12:03