The tweedie distribution has a density that follows an exponential curve but has a large concentration of data points around 0.
The beta distribution is used to model proportion data, as its support is limited to the range between 0 and 1.
The gamma distribution is used to model non-negative data that has an inherent right skew, such as income.
Gamma Regression: The gamma distribution is used to model non-negative data that has an inherent right skew, such as income.
In many data generation processes for count data, it is possible that a lot of observations will have a count of zero.
The poisson distribution is specified by one parameter lambda that represents both the mean and variance of the distribution.
Poisson regression uses the following cost function:
Poisson regression is used where target variable is measured in counts.
The concept of Generalized Linear Model (GLM) extends the framework developed in linear regression to outcomes that are not normally distributed, such as binary, count, or proportion data.