Select the appropriate model structure for an extended linear model given the behavior of the data set (e.g., appropriate link function and distribution for GLM).

Free CAS MAS-I (Modern Actuarial Statistics I) lesson in Extended Linear Models. 16 min read, ~2,395 words.

A GLM has three pieces: a random component (distribution from the exponential family), a systematic component (linear predictor ), and a link function. Pick the distribution from the response support and mean-variance relationship, not the predictor scale. Counts use Poisson or negative binomial, positive severities use gamma or inverse Gaussian...

What this lesson covers

• Content
• Example 1
• Example 2
• Common Mistakes
• Check Your Understanding
• Exam Shortcuts

Learning objectives

• C2

Browse all free MAS-I lessons or jump into free MAS-I practice questions.