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View Full Version : Is there a better alternative than binomial probability distribution?


jpu12
Jun 1, 2007, 11:12 AM
I've got a significant core population (1.3MM), along with the probability of an event occurring within that population (p of a person making a purchase at a specific store across NA vs. purchases made at any store across NA). Because there are so many stores, the p for any specific merchant is extremely low (<0.1%).

I've also got a defined sample population that is very small and cannot be increased (~50 people). Performing binomial analysis is proving to be too sensitive, because every store in the sample of 50 is well outside the normal population with a single event.

Is there another method that could be used that might be more suitable?

Thanks,

tickle
Jun 1, 2007, 01:49 PM
What?? In simple english please.

jpu12
Jun 1, 2007, 02:07 PM
What ?????????? in simple english please.

Binomial does not appear to be the best choice for discrte event analysis when the probability of the event is so low. Is there a more appropriate model?