Solution

ID: past-exam-of-the-mathematics-course-of-the-university-of-cambridge/2017/ii/paper-4/12j/d/solution

Under fit.2, observations in each period are independent Poisson random variables with a common mean, so each sample variance should fluctuate around its sample mean. The plot instead has variances roughly 130–300 for means roughly 80–120, well above the line variance equals mean. This is overdispersion.
Day-to-day traffic variation can produce a Poisson mixture: a random daily intensity increases the marginal variance and can correlate observations from the same day. A useful replacement is a negative binomial regression, with variance , or a Poisson generalized linear mixed model with a day random intercept. A day-factor effect can also be included if inference is restricted to the observed days. A Quasi-Poisson regression estimates a dispersion multiplier for uncertainty, but does not itself explain the shared-day dependence and has no ordinary likelihood-based AIC. The means can retain the period-factor or selected jump structure.

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