FITTING A RECURSIVE MODEL FOR THE BETA II BINOMIAL MIXTURE INTO OTHER RECURSIVE MODELS. A CASE OF BINOMIAL-GENERALIZED GAMMA DISTRIBUTION

Abstract

Probability distributions can be derived using recursive relations in probability. Various methods have been applied to attain this objective with Kotz(1965),Panjer(1981),Hesselager(1992) and Wang among others, leading in this study. Among the distributions obtained include mixed distributions of Poisson distribution. This paper however focuses on the mixture of beta-binomial which has had little focus as far as obtaining their recursive relations are concerned. The paper discusses its suitability and how it fits two recursive models of Panjer-Willmot and Hessselager's