Recognizing (a,b,0) and (a,b,1) Distributions
Free SOA Exam FAM (Fundamentals of Actuarial Mathematics) lesson in Severity, Frequency, and Aggregate Models. 8 min read, ~1,226 words.
(a,b,0) has exactly four members: Poisson, binomial, negative binomial, geometric. (a,b,1) adds: all zero-truncated/zero-modified versions, plus logarithmic ( ). Logarithmic is NOT zero-truncated anything: it has no (a,b,0) counterpart. ZT rescaling:. Same recursion factors, different starting value. NB arises as Poisson-Gamma mixture: heterogeneity produces overdispersion.
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- Content
- Example 1
- Example 2
- Common Mistakes
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Learning objectives
- 2f
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