10-23-2014 11:05 AM
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|
- Thank you
10-24-2014 09:59 AM
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.