Ads
related to: how to calculate compound probability
Search results
Results From The WOW.Com Content Network
In probability and statistics, a compound probability distribution (also known as a mixture distribution or contagious distribution) is the probability distribution that results from assuming that a random variable is distributed according to some parametrized distribution, with (some of) the parameters of that distribution themselves being random variables.
The Panjer recursion is an algorithm to compute the probability distribution approximation of a compound random variable = = where both and are random variables and of special types. In more general cases the distribution of S is a compound distribution .
In probability theory, a compound Poisson distribution is the probability distribution of the sum of a number of independent identically-distributed random variables, where the number of terms to be added is itself a Poisson-distributed variable. The result can be either a continuous or a discrete distribution.
In probability and statistics, a mixture distribution is the probability distribution of a random variable that is derived from a collection of other random variables as follows: first, a random variable is selected by chance from the collection according to given probabilities of selection, and then the value of the selected random variable is realized.
The Dirichlet distribution is a conjugate distribution to the multinomial distribution. This fact leads to an analytically tractable compound distribution.For a random vector of category counts = (, …,), distributed according to a multinomial distribution, the marginal distribution is obtained by integrating on the distribution for p which can be thought of as a random vector following a ...
The jumps arrive randomly according to a Poisson process and the size of the jumps is also random, with a specified probability distribution. To be precise, a compound Poisson process, parameterised by a rate λ > 0 {\displaystyle \lambda >0} and jump size distribution G , is a process { Y ( t ) : t ≥ 0 } {\displaystyle \{\,Y(t):t\geq 0 ...
What is compound interest? How can it work to your advantage and how can it hurt you financially? We break down this (sometimes confusing) concept. This was originally published on The Penny ...
The compound distribution, which results from integrating out the inverse scale, has a closed-form solution known as the compound gamma distribution. [ 22 ] If, instead, the shape parameter is known but the mean is unknown, with the prior of the mean being given by another gamma distribution, then it results in K-distribution .