The Likelihood Function is a statistical tool used to estimate the parameters of a statistical model. It measures how likely a particular set of observed data is, given specific parameter values. By maximizing the likelihood function, statisticians can find the parameter values that make the observed data most probable. In the context of maximum likelihood estimation (MLE), the likelihood function plays a crucial role. It allows researchers to compare different models and choose the one that best fits the data. This approach is widely used in various fields, including economics, biology, and machine learning.