Maximum Likelihood Estimation (MLE)

Maximum Likelihood Estimation (MLE) is a statistical method used to estimate the parameters of a model. It works by finding the values that make the observed data most probable. Imagine you have a bag of coins and want to know how many are fair versus biased. MLE helps you figure out the best estimate of the number of each type based on the outcomes you observe when flipping the coins. By maximizing the likelihood of the observed results under different parameter values, MLE provides the most plausible estimates for the underlying model.