search for: likeihood

All - I am evaluating an arima(2,1,3) and arima(3,1,3) and notice the log-likelihood of the restricted model is higher than the log-likelihood of the unrestricted. Since these are nested models, I thought the unrestricted model would have a log-likelihood at least as large as that of the restricted model. Am I interpreting the "loglik" output incorrectly? Regards, Stephen

Does anyone have any ideas (or even experience) regarding a modified log transformation that would assign real finite values to zeros and negative numbers? I encounter this routinely in a couple of different situations: * Physical measurements that are often lognormally distributed except for values that are less than additive normal measurement error. I'd like to take