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    Introduction To Negative Binomial Distribution

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    raiabdulbasit09

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    Introduction To Negative Binomial Distribution

    Uploaded by

    raiabdulbasit09
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    Introduction-to-Negative-Binomial-Distribution

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    11 views8 pages

    Introduction To Negative Binomial Distribution

    Uploaded by

    raiabdulbasit09

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    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
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    Introduction to

    Negative Binomial
    Distribution
    The negative binomial distribution is a discrete probability distribution that
    models the number of successes in a series of independent Bernoulli trials before
    a specified number of failures occurs. It is a generalization of the geometric
    distribution.

    by Rai Abdul Basit


    Definition and Characteristics
    1 Definition 2 Key Parameters
    The negative binomial distribution The two key parameters are r (number
    describes the number of failures before of successes) and p (probability of
    the r-th success in a series of success in each trial).
    independent Bernoulli trials, each with a
    constant probability of success.

    3 Discrete Nature
    As a discrete distribution, the negative binomial model assumes the random variable takes on
    only integer values.
    Applications in Real-World Scenarios

    Marketing and Sales Quality Control Epidemiology

    Modeling the number of sales Analyzing the number of defects Estimating the number of
    calls needed to make a certain found before a fixed sample size infection cases before a certain
    number of sales. is reached. number of recoveries occur.
    Relationship to Geometric Distribution

    Geometric Distribution
    Shared Properties
    The negative binomial distribution reduces to the
    geometric distribution when r = 1, modeling the Both distributions share the memoryless property
    number of failures before the first success. and can be used to model count data.

    1 2 3

    Generalization
    The negative binomial distribution generalizes the
    geometric distribution by allowing the number of
    successes to be any positive integer r.
    Estimation and Parameter Inference
    Maximum Likelihood Estimation Method of Moments
    Alternatively, the parameters can be estimated
    The parameters r and p can be estimated using using the method of moments, equating sample
    maximum likelihood estimation from observed moments to their theoretical counterparts.
    data.

    Hypothesis Testing Confidence Intervals


    Statistical tests can be used to infer the values of Confidence intervals can be constructed to
    the parameters and assess the goodness of fit of quantify the uncertainty in the estimated
    the negative binomial model. parameters.
    Overdispersion and its Implications

    Overdispersion
    The negative binomial distribution can capture overdispersion, where the variance is
    greater than the mean, unlike the Poisson distribution.

    Causes
    Overdispersion can arise from unobserved heterogeneity, contagion effects, or the
    presence of outliers in the data.

    Implications
    Ignoring overdispersion can lead to underestimation of standard errors and incorrect
    statistical inferences.
    Comparison to Poisson Distribution

    Poisson Distribution Negative Binomial Comparison


    Assumes the variance is equal to Can model overdispersion, with The negative binomial distribution
    the mean. the variance greater than the is a more flexible model that can
    mean. capture additional sources of
    variability.
    Practical Considerations and Limitations

    Considerations Limitations

    Parameter Interpretation Sensitivity to Outliers

    Goodness of Fit Assessment Difficulty in Interpretation

    Computational Efficiency Potential for Overfitting

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