For the pdf $\theta\left(1-x_{i}\right)^{\theta-1}$, find the M.L.E. and show that it is sufficient.

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My problem:

Let $X_1, X_2, ...,X_n$ be a random sample from the probability density function $$f\left(x;\theta\right)=\begin{cases} \theta \left(1-x\right)^{\theta-1} &: 0 <x_{i} < 1, 0< \theta \\ 0 &: \text{else} \end{cases}$$ Find the maximum likelihood estimator of $\theta$ and show that it is also a sufficient statistic.

My work so far:

For this probability density function I have found the M.L.E to be

$L\left(X_1,X_2, ...,X_n;\theta\right)= \prod^{n}_{i=1}f\left(x_{i};\theta\right)=\prod^{n}_{i=1}\left(\theta\left(1-x_{i}\right)^{\theta - 1}\right)=\theta^{n}\left(\prod^{n}_{i=1}\left(1-x_{i}\right)\right)^{\theta-1}$

Then, $\ln L= n \ln \theta + \left(\theta-1\right) \ln\left(\prod^{n}_{i=1}\left(1-x_{i}\right)\right)=n \ln \theta + \left(\theta-1\right)\sum^{n}_{i=1}\ln\left(1-x_{i}\right)$

Now, solving the partial derivative for $0$

$$\frac{\partial \ln L}{\partial \theta}=0 $$ $$\qquad = \frac{n}{\theta}+\sum^{n}_{i=1}\ln\left(1-x_{i}\right)=0$$

$$\implies \frac{n}{\theta}=-\sum^{n}_{i=1}\ln \left(1-x_{i}\right) $$

$$ \implies \theta = -\frac{n}{\sum^{n}_{i=1}\ln \left(1-x_{i}\right)} $$

So, the M.L.E. of $\theta$ is $\hat{\theta}=-\frac{n}{\sum^{n}_{i=1}\ln \left(1-x_{i}\right)}$.

From here I'm not sure how to show that this is a sufficient statistic. Should I use the factorization criterion? Any feedback is greatly appreciated.

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You can absolutely use the Factorization theorem. In fact, you already have the factorization at the end of the first line of your MLE calculation: $$L(\theta \mid \boldsymbol x) = \theta^n \left(\prod_{i=1}^n (1-x_i)\right)^{\theta-1}$$ implies the choice $$h(\boldsymbol x) = 1, \quad T(\boldsymbol x) = \prod_{i=1}^n (1-x_i), \quad g(T \mid \theta) = \theta^n T^{\theta-1}.$$ Thus $T(\boldsymbol x)$ is sufficient for $\theta$, and the MLE $$\hat \theta = -\frac{n}{\log T},$$ which is a monotone function of $T$, is also sufficient for $\theta$.


I should note that to be fully correct, the likelihood function should actually be written $$L(\theta \mid \boldsymbol x) = \theta^n \left(\prod_{i=1}^n (1-x_i)\right)^{\theta-1} \prod_{i=1}^n \mathbb 1(0 < x_i < 1) = \theta^n \left(\prod_{i=1}^n (1-x_i)\right)^{\theta-1} \mathbb 1(0 < x_{(1)} \le x_{(n)} < 1),$$ hence the actual form of the factorization has $h(\boldsymbol x) = \mathbb 1(0 < x_{(1)} \le x_{(n)} < 1)$. This does not affect your MLE or proof of sufficiency, but because we require that the sample observations be contained in the interval $(0,1)$, the product of indicator functions and the subsequent minimum and maximum order statistics, are ancillary statistics for $\theta$.