Implementing the Pareto/NBD Model Given Interval-Censored Data
This note derives the Pareto/NBD likelihood function (and related expressions) for the case where a customer's transaction history is reported in terms of the transaction counts for each of a series of discrete time-intervals (i.e., when the data are interval censored.)
Note [PDF (100k)]
(The August 2010 version of this document corrects minor typos in the derivations presented in the November 2005 version. The results are unchanged.)