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I have an example that derives the MLE for Binomial.

Since there's that factorial term $n_i \choose x_i$ in front of the Binomial p.d.f. and it's a constant, the example claims that one can merely use

$$L(p;x)=\prod_{i=0}^n p^{x_i} (1-p)^{n_i - x_i}$$

as the likelihood function (to find MLE), discarding the constant factorial from it.

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3 Answers 3

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Muliplication by a positive constant doesn't affect the MLE. A negative constant will require you to minimize instead of maximize.

Given a function $f$, and a monotonically increasing function $g$, it's not hard to show that $\arg \max g \circ f$ is the same as $\arg \max f$.

For a positive constant $c$, let $g_c(x)=cx$. Obviously $g_c$ is monotonically increasing. In this case, just let $c$ be the reciprocal of whatever constant you'd like to drop from the likelihood.

This is the same reason we can maximize the log-likelihood in place of the likelihood: the logarithm is a monotone function.

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The binomial coefficient only varies in $n$ and $x$, but not in $p$, therefore as a function of $p$, the binomial coefficient is constant. Multiplying a function by a positive constant doesn't change the location of the maximum, only its value. MLE only cares about the location of the maximum.

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If you use R, you can visualize the MLE manually by plotting the density of the binomial distribution at any given value of the parameter $\pi$, for example in the case of $7$ successes out of $10$ trials (curve in blue on the plot) with this code:

p = seq(0,1,0.0001)
trials= 10
successes = 7
density = dbinom(7, 10, prob=p)

density = (factorial(trials)/(factorial(successes)*factorial(trials-successes))) * p^successes * (1 - p)^(trials-successes)

If now you overlap the plot calculated by multiplying density times 5, the same global maximum will be obtained at $0.7$ (in red).

enter image description here

So, notice that as long as $l(\pi)=\pi^{\text{successes}}\,(1-\pi)^{\text{failures}}$ remains untouched, ${\text{trials}}\choose{\text{failures}}$ in front of it would result in exactly the same estimated $\pi$ with a zero first derivative as any other possible constant.

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