What is Poisson Distribution?
Poisson distribution describes the likelihood of a certain number of events occurring within a given time frame. It applies to situations where events happen independently and at a constant average rate. This distribution proves useful when numerous trials exist, each with a minimal chance of success. In layman’s language, it helps in forecasting how often something occurs over a specific time, provided we know the average rate of occurrence. Under Poisson Distribution,
- The probability of success in the interval is very small and is unstable.
- The occurrence of success in an interval is statistically independent of that in any other trial.
If X has a Poisson Distribution with parameter , then we can write X ~ Poi().
Table of Content
- Probability Distribution Function (PDF) of Poisson Distribution
- Characteristics of Poisson Distribution
- Shape of Poisson Distribution
- Mean and Variance of Poisson Distribution
- Fitting a Poisson Distribution
- Poisson Distribution as an Approximation to Binomial Distribution
- Examples of Poisson Distribution