gamma distribution with negative values

I want to estimate the parameters for gamma distribution in R-studio by using the


But I got this error

Warning message:
In gamma_est(carsamp$claimcst0) : negative values in the data!

I know my data have a lot of zero value.
Can someone help me with how I can solve this problem?

Could you use a more appropriate distribution?

No I need the gamma distribution because I work with the insurance datatset ( claims cost).

The gamma distribution is only defined for positive numbers. If you observe negative values then, as @nirgrahamuk was suggesting, the distribution can't be gamma. My guess is that a negative "cost" is fundamentally different from a positive cost.

Hi, as the other posters stated, you can only use Gamma with positive values. if the data contains negatives, these are errors and you should delete them. You may want to split the dataset into zero values and positive values so that you can model the positives with Gamma and estimate the no claim versus claim split some other way.

Thank you all for the help.

This topic was automatically closed 21 days after the last reply. New replies are no longer allowed.

If you have a query related to it or one of the replies, start a new topic and refer back with a link.