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Weighted Negative Binomial Poisson-Lindley Distribution with Actuarial Applications

This version is not peer-reviewed.

Submitted:

30 April 2018

Posted:

02 May 2018

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Abstract
This study introduces a new discrete distribution which is a weighted version of Poisson-Lindley distribution. The weighted distribution is obtained using the negative binomial weight function and can be fitted to count data with over-dispersion. The p.m.f., p.g.f. and simulation procedure of the new weighted distribution, namely weighted negative binomial Poisson-Lindley (WNBPL), are provided. The maximum likelihood method for parameter estimation is also presented. The WNBPL distribution is fitted to several insurance datasets, and is compared to the Poisson and negative binomial distributions in terms of several statistical tests.
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Copyright: This open access article is published under a Creative Commons CC BY 4.0 license, which permit the free download, distribution, and reuse, provided that the author and preprint are cited in any reuse.

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