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Underdispersion is when there is less variability than there 'ought' to be in the data. Eg, the variance of counts could be less than the mean, whereas the variance of a Poisson should equal the mean.
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What does the dispersion parameter mean in negative binomial regression?
Doesn't that value (0.6974) mean that there is underdispersion as it's below 1, so the variance is 0.6974 times smaller than the mean? That seems contradictory to me ... ? …