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Thread: Negative Binomial

  1. #1
    Actuary.com - Level I Poster
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    Negative Binomial

    Can anyone please confirm if these formulas are correct for negative binomial, thanks.

    pdf = [ (x+r-1) nCr (x) ](p^r) (q^x)
    cdf = ∑ pdf
    E(x) = r*q/p
    var(x) = r*q/(p^2)
    mgf = [p/(1-q*e^t)]^(x+1)

  2. #2
    Actuary.com - Posting Master
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    A good place to check wikipedia or mathworld.wolfram.com

  3. #3
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    I checked and they give me 2 different answer.
    Thats why I want to verify if this is correct, thanks

  4. #4
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    Well wikipedia disagrees with you right?

    Now in the mathworld link, it might look different but write out (x+r-1) C (r-1) and compare that to (x+r-1) C (x). You should be able to prove they are the same.

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