The Method of Moments is a system used to estimate the parameters of an unobservable population by using sample moments. This is achieved by equating the sample values to the population values and solving for the required parameters. While this method is not used as widely anymore due to the Method of Maximum Likelihood being more useful, it still has some use because of it’s easier to calculate equations. It is also used as a first approximation to the maximum likelihood in situations where the equations for maximum likelihood are too complicated to calculate. The method of moments also has a significant disadvantage when samples are small, where the calculations will give parameters that are nonsensical to the problem, often because it is unable to take into account all the all the relevant information for the sample.
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