The Likelihood Function and Signal Detection

This chapter answers the question: given a set of data with known pdf, what are the most likely parameter values that would give rise to the data? The answer to this question requires defining a likelihood function. The likelihood function provides the basis for a general parameter estimation approach known as maximum likelihood estimation, which is covered in Chap. 6 6. Another use of the likelihood function is testing to select the most plausible of two or more hypotheses. This is the basis of signal detection, otherwise known as statistical decision theory. We provide a brief introduction to signal detection and the matched filter.