Poisson Regression Explained: How to Model Count Data with Examples
Count data is ubiquitous in the real world, from the number of insurance claims an individual files, to website visits per hour, to daily transaction counts in finance. Traditional linear regression models fall short for such non-negative integer data, but Poisson regression is specifically designed for this scenario. This comprehensive tutorial covers the complete theory, statistical underpinnings, and hands-on coding for Poisson regression, guiding you from the mathematical foundation to advanced topics and real-world case studies.
Poisson regression is ideal when your dependent variable is a count—a non-negative integer (0, 1, 2, ...). Typical scenarios include:
The key characteristics of count data:
