Likelihood Ratio

The Likelihood Ratio is a statistical tool used to compare how likely two different hypotheses are, based on observed data. In simpler terms, it measures how much more likely one explanation (or theory) is than another after considering the evidence. For instance, in medicine, it helps determine how much more probable a disease is given a test result compared to not having the disease. A higher likelihood ratio means stronger evidence for one hypothesis over the other, aiding in decision-making processes across various fields, including science, law, and finance.