### Likelihood and Maximum Likelihood Method

### Likelihood

Likelihood is the probability that an observation is predicted by the specified model.

### Maximum Likelihood

Maximum likelihood is the maximum probability that an observation is predicted by the specified model.

**What is a possible model? **

A model that predicts observations with a probability that exceeds a given minimum.

**What is the most possible model?**

A model that most likely predicts observations, i.e. that predicts the observations with the largest probability – most likely model, given the data.