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  • Interpreting p-value of likelihood ratio test for fixed coefficients

    Hello This is my first post here. I'm running a mixed logit model for transport mode choice with 4 variables in Stata 17 with cmmixlogit. The coefficient for travel time variable is defined random. As part of estimation result the LR test vs fixed parameters is reported. The prob>=chibar2 is 0.4442. How do we interpret this prob? Can we reject randomness and accept fixed parameters? I read "sg160: On boundary-value likelihood-ratio tests" from stata technical bulletin which discusses the distribution of the test statistic but couldn't understand. Can anyone help? LR test vs. fixed parameters: chibar2(01) = 0.02 Prob >= chibar2 = 0.4442

  • #2
    Hadi:
    quoting and tweaking a part of the text concerning the Example #1 in -cmmixlogit- entry, Stata .pdf manual, you can conclude that:
    The likelihood-ratio (LR) test in the footer shows the result of a test against a model with only fixed
    coefficients and indicates that you cannot reject the null hypothesis that the coefficients on travel time
    are fixed.
    Kind regards,
    Carlo
    (Stata 19.0)

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