Journal of Probability and Statistics (Jan 2015)
The Concepts of Pseudo Compound Poisson and Partition Representations in Discrete Probability
Abstract
The mathematical/statistical concepts of pseudo compound Poisson and partition representations in discrete probability are reviewed and clarified. A combinatorial interpretation of the convolution of geometric distributions in terms of a variant of Newton’s identities is obtained. The practical use of the twofold convolution leads to an improved goodness-of-fit for a data set from automobile insurance that was up to now not fitted satisfactorily.