4.4 Article

Likelihood-Based Confidence Intervals for a Parameter With an Upper or Lower Bound

Journal

Publisher

ROUTLEDGE JOURNALS, TAYLOR & FRANCIS LTD
DOI: 10.1080/10705511.2016.1275969

Keywords

confidence intervals; likelihood ratio test; Wald test; Wilks test

Funding

  1. National Institute of Health [R01-DA018673, R25-DA026119]

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The precision of estimates in many statistical models can be expressed by a confidence interval (CI). CIs based on standard errors (SEs) are common in practice, but likelihood-based CIs are worth consideration. In comparison to SEs, likelihood-based CIs are typically more difficult to estimate, but are more robust to model (re)parameterization. In latent variable models, some parameters might take on values outside of their interpretable range. Therefore, it is desirable to place a bound to keep the parameter interpretable. For likelihood-based CI, a correction is needed when a parameter is bounded. The correction is known (Wu & Neale, 2012), but is difficult to implement in practice. A novel automatic implementation that is simple for an applied researcher to use is introduced. A simulation study demonstrates the accuracy of the correction using a latent growth curve model and the method is illustrated with a multilevel confirmatory factor analysis.

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