Hi
What are the limitations in the format for the formulas of log-likelihood ?
I tried unsuccessfully to make a mle with the following script:
genr BUY = BUYE + BUYF
genr SELL = SELLE + SELLF
genr c1 = 0.5
genr c2 = 0.2
genr c3 = 0.2
mle loglik= log (c3*((1-c1)*((0.5*(1+c2))^BUY *(0.5*(1-c2))^SELL)+
c1*((0.5*(1-c2))^BUY *(0.5*(1+c2))^SELL)) +(1-c3)*0.5^BUY*0.5^SELL)
params c1 c2 c3
end mle
Can you see why ?
Thanks