Hi,
I'm modelling claims frequency by using proc genmod for a GLM with Poisson distribution. I was hoping that someone could please help me understand the "offset" term better and when it should and shouldn't be used?
The data is at a per-policy level as in the example below, so I am unsure whether or not I should include the offset term. Please help!
Policyholder | Gender | Age | Months insured | Total number of claims | Total amount of claims |
Peter | Male | 22 | 6 | 1 | $10 000 |
Sue | Female | 32 | 12 | 0 | 0 |
- Thank you
Use the offset term when the sampling duration differs between at least two subjects.
Example. If period = 6 for Peter and 12 for Sue, then your Proc GenMod code should contain offset=Period.
Hope this helps.
Brandy
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