Solved – Likelihood ratio test in Poisson distribution

likelihood-ratiopoisson distribution

I have a dataset that describe the number of passengers that fly with an airline per day. The airline guesses that on average 1300 passengers fly per day and I want to test this hypothesis using a likelihood ratio test.

My first thought was to set the hypotheses: H0: λ = 1300 and H1: λ <>1300. According to wikipedia the likelihood ratio test is: -2ln(likelihood for null model) + 2ln(likelihood for alternative model).

Using R I can find the likelihood of the null hypothesis but how can I calculate the likelihood for the alternative hypothesis in a Poisson distribution?

Thanks

Best Answer

how can I calculate the likelihood for the alternative hypothesis in a Poisson distribution?

You find the MLE of $\lambda$ and then compute the log-likelihood at that value of $\lambda$ (and multiply by -2)

[However, some simplifications may be made.]