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 z≤w, then logz≤logw. 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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