Gamma Distribution: Parameter Determination !!

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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?


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