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pacmann.io © 2022 – Pacmann AI 11 Poisson Regression
pacmann.io © 2022 – Pacmann AI 12 Binomial Distribution : Review Previously you have learn about Binomial Regression , where the phenomenon it modeled can be describe as : ● From N independent trial ● Each trial have only two outcomes, can be success or failure ● Probability of success θ , probability of not success (1 - θ ) ● We want to know the probability of having x times success , can be calculated through its pdf
pacmann.io © 2022 – Pacmann AI 13 Binomial Distribution : Problem ● Let say we have concrete case, we want to estimate 2000 from 5000 people will have rare disease ● Based on previous finding , the infection rate θ is 0.001 ● If we choose to find using Binomial Distribution it can be formulated as : ● We will encountered the problem when computing the the power term
pacmann.io © 2022 – Pacmann AI 14 Poisson Distribution : Solution ● We can choose another distribution to approximate that, using poisson distribution ● Using previous case, we can estimate the probability of having 2000 people get rare disease by finding PMF of poisson distribution. λ = N . θ λ : Rate of occurrence for an event , for example N : Number of trials θ : Probability of event occurring

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