Background
The likelihood ratio, often denoted by (the capital Greek letter lambda), is the ratio of the likelihood function varying the parameters over two different sets in the numerator and denominator. A likelihood-ratio test is a statistical test for making a decision between two hypotheses based on the value of this ratio.
It is central to the Neyman–Pearson approach to statistical hypothesis testing, and, like statistical hypothesis testing generally, is both widely used and much criticized.
Read more about this topic: Likelihood-ratio Test
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