The data below taken from greenwood and yule 19203 shows


The data below, taken from Greenwood and Yule, (1920)3 , shows the frequency of accidents occurring, over a ?ve-week period, to 647 women making high explosives during World War I.

Number of Accidents

Observed Frequency

0

447

1

132

2

42

3

21

4

3

5+

2

(i) If is the random variable representing the number of accidents,  determine the mean and the variance of this clearly Poisson-like random variable, and con?rm that this is an over-dispersed Poisson variable for which the Poisson population parameter, rather than being constant, varies across the population.

(ii) For over-dispersed Poisson variables such as this, the more appropriate model is the negative binomialNBi(α, p). Determine the method of moments estimates for the unknown parameters α and for this data set.

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Finance Basics: The data below taken from greenwood and yule 19203 shows
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