Gamma Distribution: Parameter Determination !!

abhishek.benjamin
Posts: 5
Joined: Thu Jul 24, 2014 9:56 am

Gamma Distribution: Parameter Determination !!

Postby abhishek.benjamin » Mon Jul 28, 2014 11:36 pm

Hi !!

Just wanted to ask one question with regards to Gamma Distribution topic in Business Analytics Course: Chapter 3 & Topic 9. For a Random Values X, representing Losses, we have chosen Alpha= 2 & Beta=3, shown as Ga (2, 3).

Firstly, I wanted to know how did we find that a particular Auto-insurance claim is following Gamma (2,3) distribution? Is there any way for calculating Alpha=2 & Beta=3? As each case will be different so different parameters need to be taken.

Secondly, for any Auto-insurance claim or Bank Loan Default, can someone kindly tell me what distinct advantages Gamma distribution possess over Poisson Distribution or Negative Binomial Distribution?

Regards.

Return to “CFA Level I”



cron

Disclaimer

Global Association of Risk Professionals, Inc. (GARP®) does not endorse, promote, review or warrant the accuracy of the products or services offered by EduPristine for FRM® related information, nor does it endorse any pass rates claimed by the provider. Further, GARP® is not responsible for any fees or costs paid by the user to EduPristine nor is GARP® responsible for any fees or costs of any person or entity providing any services to EduPristine Study Program. FRM®, GARP® and Global Association of Risk Professionals®, are trademarks owned by the Global Association of Risk Professionals, Inc

CFA Institute does not endorse, promote, or warrant the accuracy or quality of the products or services offered by EduPristine. CFA Institute, CFA®, Claritas® and Chartered Financial Analyst® are trademarks owned by CFA Institute.

Utmost care has been taken to ensure that there is no copyright violation or infringement in any of our content. Still, in case you feel that there is any copyright violation of any kind please send a mail to abuse@edupristine.com and we will rectify it.