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A Simple Modification of the Binomial Distribution

Published online by Cambridge University Press:  11 August 2014

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Given any probability distribution, new distributions can be derived from it by assuming its parameters to follow some specific probability distributions. A simple example of this process is provided by the Poisson distribution

P(rλ) = e-λλr/r! (r = o, 1, 2, …).

If the parameter λ is assumed to follow the Pearson's Type III law

then the probability of r successes is obtained as

Type
Research Article
Copyright
Copyright © Institute of Actuaries Students' Society 1960

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References

REFERENCES

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