Saturday, 30 November 2013

derivatives - Why are the local extrema of a log-transformed function equal to local extrema of the original function?



I am studying maximum likelihood and to simplify taking the derivative of the likelihood function, it is often transformed by the natural log before taking the derivative.



I have read in other posts that this is because the logarithm is a monotonic function, so its extrema will be the same as the original function. However, I do not understand why this is the case. Can someone explain intuitively why the transformation does not affect the local extrema?


Answer



Let f(x) be a positive function and suppose that x0 is the local maximum of f(x) in the interval [a,b]. This means that for any y[a,b], f(y)f(x0).



Logarithms is a monotonically increasing function: if zw, then logzlogw. So for any y[a,b], since f(y)f(x0), we have logf(y)logf(x0). Hence, x0 is also the local maximum for logf(x).




The other direction can be proven by noting that the inverse of log is also monotonically increasing.


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