# Poisson process

#### kulstudent

##### New Member
Dear statisticians,

I have a question that is of great importance for my master thesis in insurance science. I have obtained a dataset that records the aggregate claim size per individual in connection to health care insurance for a certain policy year. What I do not observe, however, is the number of claims that the individuals effectively made.

Now---for a reason that is too complex to explain---I want to model claim size (per individual) in terms of "times that the individual claimed 50 dollar". My question therefore is: could this ("the number of times that an individual's cumulative health care cost exceeds a multiplicity of 50") possibly be interpreted as a Poisson process? And if not, is there another frequency distribution that could address this issue?

#### rogojel

##### TS Contributor
hi,
you could look at the mean and the variance. For a poisson distribution they should be about equal.
BTW there are several other distributions that could come into play - binomial, negative binomial ..etc. It could also happen that you have too many zeroes for the data to fit into a standard distribution .. so, best would be to show a sample of your data.

regards

#### hlsmith

##### Less is more. Stay pure. Stay poor.
"the number of times that an individual's cumulative health care cost exceeds a multiplicity of 50"

You mean is > than \$50 right? Because the above line reads differently than that.