Offset term for proc Genmod (Poisson distribution)

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Occasional Contributor
Posts: 6

Offset term for proc Genmod (Poisson distribution)

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!

PolicyholderGenderAgeMonths insuredTotal number of claimsTotal amount of claims
PeterMale2261$10 000
SueFemale321200

- Thank you

Occasional Contributor
Posts: 7

Re: Offset term for proc Genmod (Poisson distribution)

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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