Apply offsets and weights as appropriate.
Free SOA Exam PA (Predictive Analytics) lesson in Generalized Linear Models. 16 min read, ~2,463 words.
An offset is a predictor whose coefficient is fixed at 1, added on the link scale, never estimated. Use a log offset (log of exposure) in a Poisson count model to model a rate per unit of exposure. A weight scales how much each observation contributes to the likelihood; it...
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What this lesson covers
- Content
- Example 1
- Example 2
- Common Mistakes
- Check Your Understanding
- Exam Shortcuts
Learning objectives
- 4b
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