The Actuarial Education Company

Pearson residuals

var( )
i i
i
y m
m
-


where

var( )
i
m is the variance of the distribution with any
i
m s replaced by the
fitted results.
Useful for
2
~ ( , )
i i
Y N m s only as the Pearson residuals are (0,1) N .
non-normal distributions produce skewed (non-normal) Pearson residuals, which
makes them hard to interpret.

Poisson distribution ~ ( )
i i
Y Poi m
Pearson residual


var( )
i i i i
i i
y y m m
m m
- -
= = since var( )
i i
Y m =

Exponential distribution ~ ( ) ~ (1 )
i i i
Y Exp Exp l m
Pearson residual

var( )
i i i i
i
i
y y m m
m
m
- -
= = since
2
2
1
var( )
i
i i
Y
l
m = =

Gamma distribution ~ ( , ) ~ ( , )
i i i
Y Ga Ga a l a a m
Pearson residual


var( )
i i i i
i i
y y m m
m a m
- -
= = since
2
2
var( )
i
i
i
Y
m
a
a
l
= =

Normal distribution
2
~ ( , )
i i
Y N m s
Pearson residual

var( )
i i i i
i
y y m m
s
m
- -
= = since
2
var( )
i
Y s =

Binomial distribution
i
Z
i
n
Y = where ~ ( , )
i i
Z Bin n m
Pearson residual

( )

var( ) (1 )
i i i i
i i i
y y
n
m m
m m m
- -
= =
-

since
( ) 2 2
(1 ) (1 )
1
var( ) var var( )
i i i i i
Z n
i i
n n
n n
Y Z
m m m m - -
= = = =


The Actuarial Education Company
Poisson distribution ~ ( )
i i
Y Poi m with linear predictor,
i
h a = .
Pearson residual

var( )
i i i i i
i i
y y y e
e
a
a
m m
m m
- - -
= = =
since var( )
i i
Y m = and, using inv. link function,

i
i
e e
h a
m = =

Exponential distribution ~ ( ) ~ (1 )
i i i
Y Exp Exp l m with linear predictor,
i
h a = .
Pearson residual

var( )
i i i i
i
i
i
y y
y
m m
a
m
m
- -
= = = -
since
2
2
1
var( )
i
i i
Y
l
m = = and, using inv. link function,
1 1

i
i
a h
m = =

Gamma distribution ~ ( , ) ~ ( , )
i i i
Y Ga Ga a l a a m with linear predictor,
i
h a = .
Pearson residual

( 1)

var( )
i i i i
i
i i
y y
a y
a
m m
a
m m
- -
= = = -
since
2
2
var( )
i
i
a
i
a
Y
m
l
= = and, using inv. link function,
1 1

i
i
a h
m = =

Normal distribution
2
~ ( , )
i i
Y N m s with linear predictor,
i
h a = .
Pearson residual

var( )
i i i i i
i
y y y m m a
s s
m
- - -
= = =
since var( )
i
Y s = , and, using inv. link function,

i i
m h a = =

Binomial distribution
i
Z
i
n
Y = where ~ ( , )
i i
Z Bin n m with linear predictor,
i
h a = .
Pearson residual

( ) (1 )

var( ) (1 )
i i i i i
i i i
y y y e e
n
e n
a a
a
m m
m m m
- - + -
= = =
-

since
( ) 2 2
(1 ) (1 )
1
var( ) var var( )
i i i i i
Z n
i i
n n
n n
Y Z
m m m m - -
= = = =
and, using inv. link function,


1 1

i
i
e e
i
e e
h a
a h
m
+ +
= =