Past exam of the mathematics course of the University of Cambridge 2009 iii Paper 36 3 b Solution Created 2026-10-03 Updated 2026-10-14
Let . The Poisson-lognormal random-effect model assigns each plate a random intensity . Conditional on that intensity its Poisson distribution has mean and variance both , but marginalizing over the normal distribution of the random effect givesThe law of total variance yieldsThis exceeds the mean whenever . The independent plate effects supply additional heterogeneity without inducing dependence between plates conditional on the global parameters. Also is the median random intensity, not its marginal mean; the factor matters for population predictions.