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Compound Binomial Distribution

N

nageshmcl

Member
Number of claims, N ~ B(n,q) is used, Is there any specific reason in using the probability 'q' instead of 'p'?

Thanks & Regards,
Nageswar.
 
NO,

It can be anything - p , q , Pi etc.

Remember it is the probabilty of an event happening.
 
True the q is just a dummy variable. May use any symbol you wish.

That said looking at the formulas at the end of the chapter I thought they used q because it created similar formulas to those of the compound negative binomial making it easy for remembering since they are standard book work.
 
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