Likelihood Based Inference vs Method of Moments

Developers should learn Likelihood Based Inference when working on data science, machine learning, or statistical modeling projects that require robust parameter estimation from data, such as in regression analysis, time series forecasting, or probabilistic programming meets developers should learn the method of moments when working on data analysis, machine learning, or econometric modeling projects that require parameter estimation from observed data, as it offers a simple and intuitive way to derive estimates without complex optimization. Here's our take.

Likelihood Based Inference

Nice Pick

Developers should learn Likelihood Based Inference when working on data science, machine learning, or statistical modeling projects that require robust parameter estimation from data, such as in regression analysis, time series forecasting, or probabilistic programming

Pros

• It is essential for tasks like building predictive models, conducting A/B testing, or implementing algorithms that involve optimization of statistical models, as it provides a principled way to infer parameters and assess model fit
• Related to: statistical-inference, bayesian-inference

Cons

• Specific tradeoffs depend on your use case

Method of Moments

Developers should learn the Method of Moments when working on data analysis, machine learning, or econometric modeling projects that require parameter estimation from observed data, as it offers a simple and intuitive way to derive estimates without complex optimization

Pros

• It is particularly useful in scenarios where computational simplicity is prioritized, such as in educational contexts or initial exploratory analysis, and for distributions where moment equations are easy to solve, like the normal or exponential distributions
• Related to: maximum-likelihood-estimation, statistical-inference

Cons

• Specific tradeoffs depend on your use case

The Verdict

These tools serve different purposes. Likelihood Based Inference is a concept while Method of Moments is a methodology. We picked Likelihood Based Inference based on overall popularity, but your choice depends on what you're building.

The Bottom Line

Likelihood Based Inference wins

Based on overall popularity. Likelihood Based Inference is more widely used, but Method of Moments excels in its own space.