New Method Improves Accuracy of Small Area Estimation for Human Development
The researchers compared two methods, maximum likelihood and restricted maximum likelihood, to estimate random factors in small areas. They found that the restricted maximum likelihood method had lower mean square error, making it more accurate than maximum likelihood. When applied to human development index data in South Sulawesi, the restricted maximum likelihood method outperformed Ordinary Least Square and maximum likelihood. Specifically, the Gross Regional Domestic Product significantly influenced the human development index in South Sulawesi.