Gamma Distribution — Intuition, Derivation, and Examples

and why does it matter?

Before setting Gamma’s two parameters α, β and plugging them into the formula, let’s pause for a moment and ask a few questions…

Why did we have to invent the Gamma distribution? (i.e., why does this distribution exist?)

When should Gamma distribution be used for modeling?

1. Why did we invent Gamma distribution?