HORSE RACING MODEL
I'm trying to estimate the β coefficients in the following equation using maximum likelihood procedures:
where βk is a coefficient which measures the relative contribution of information xij (k) to horse i's chance of winning race j.
I've attached an excel spreadsheet with some mock data. I'd like to know the formula to determine the value for β by maximizing the log likelihood function.
P.S. - I know the spreadsheet only contains one variable and data for two races, which is nowhere near enough to derive a meaningful result, but it's okay. I just need the formula.
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