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Modeling Bounded Count Environmental Data Using a Contaminated Beta-Binomial Regression Model

Published: April 18, 2025 | arXiv ID: 2504.13665v1

By: Arnoldus F. Otto , Antonio Punzo , Johannes T. Ferreira and more

Potential Business Impact:

Helps climate studies use extreme weather data.

Business Areas:
A/B Testing Data and Analytics

This paper investigates two environmental applications related to climate change, where observations consist of bounded counts. The binomial and beta-binomial (BB) models are commonly used for bounded count data, with the BB model offering the advantage of accounting for potential overdispersion. However, extreme observations in real-world applications may hinder the performance of the BB model and lead to misleading inferences. To address this issue, we propose the contaminated beta-binomial (cBB) distribution (cBB-D), which provides the necessary flexibility to accommodate extreme observations. The cBB model accounts for overdispersion and extreme values while maintaining the mean and variance properties of the BB distribution. The availability of covariates that improve inference about the mean of the bounded count variable motivates the further proposal of the cBB regression model (cBB-RM). Different versions of the cBB-RM model - where none, some, or all of the cBB parameters are regressed on available covariates - are fitted to the datasets.

Country of Origin
🇿🇦 South Africa

Page Count
25 pages

Category
Statistics:
Methodology