Understand and apply control and offset variables in GLMs.
Free CAS MAS-I (Modern Actuarial Statistics I) lesson in Extended Linear Models. 16 min read, ~2,453 words.
A control variable is a predictor with an estimated coefficient that you fit to remove confounding but choose not to use when generating prices or predictions. An offset is a predictor with a coefficient fixed at 1 on the linear-predictor scale, used to bake a known effect (exposure, prior rate...
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What this lesson covers
- Content
- Example 1
- Example 2
- Common Mistakes
- Key Takeaways
- Exam Shortcuts
Learning objectives
- C6
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