The LRT calculates the ratio of the maximum likelihood of the data under two different hypotheses. The null hypothesis (H0) represents the simpler model, while the alternative hypothesis (H1) represents the more complex model. The test statistic is given by:
\[ \lambda = \frac{L(\text{H0})}{L(\text{H1})} \]
Where \( L(\text{H0}) \) and \( L(\text{H1}) \) are the maximum likelihoods under the null and alternative hypotheses, respectively. This ratio is then transformed into a chi-square statistic to determine the statistical significance.
