Likelihood ratio test output

[Raisa Shafiquddin]

How might one interpret the following Likelihood Ratio test output? Does the following result indicate non-rejection of the the null hypothesis:

Likelihood-ratio test LR chi2(2) = 5.15
(Assumption: restrict nested in unrestrict) Prob > chi2 = 0.0762

[Marcos Almeida]

There is a cornucopia of information about the lrtest, starting with - help lrtest -in the command window.

If you are hungry for more, you may wish to read this text: https://stats.idre.ucla.edu/stata/fa...test-in-stata/

[Morad Bali]

Hello !

To provide you an answer and except if I am mistaking (I will let someone correct me then), the interpretation of LR test of identifying restrictions is that if "Prob > chi2" is greater than 0.05, you cannot reject the null hypothesis at 5% level. So yes, your result indicates the non-rejection of H0 at a significance level of 0.05.

H0: any overidentifying restrictions are valid
H1: H0 is not true

Best regards,
M B