Negative Binomial Distribution

Discussion in 'CT6' started by REJOICE, Nov 25, 2008.

  1. REJOICE

    REJOICE Member

    In the exam, which of the two distributions do we use, Type 1 or Type 2?
     
  2. MarkC

    MarkC Member

    • A Type 1 negative binomial distribution with parameters (k,p) can take the values k, k+1, k+2, ... (see Tables, page 8).
    • A Type 2 negative binomial distribution with parameters (k,p) can take the values 0, 1, 2, ... (see Tables, page 9).

    So if you're not told which Type to use, ask yourself what values your random variable could take.

    If, for example,
    • X is a random variable modelling "number of insurance claims incurred in December"; and
    • you're told X is negative binomial,
    it will almost certainly be Type 2, because it's possible for no claims to occur.
     
  3. REJOICE

    REJOICE Member

    Thanks Mark for your response:) Am happy now.
     

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