POISSON DISTRIBUTION
POISSON DISTRIBUTION
• It is commonly used to model events occurring randomly in a fixed interval of time
or space.
• An event can happen any number of times within the given time period.
• Events are not dependent on one another but occur independently.
POISSON DISTRIBUTION
• Poisson distribution is used to define a discrete outcome. Simply put, a discrete outcome is
something that can occur in a ‘yes’ or ‘no’ way.
• If something does not occur – within a given time period – then it can be described a zero value.
• If it occurs just once, it will be described 1, twice, 2, and so on.
• As such, Poisson distributions require measurable, discrete outcomes from zero upwards in
positive integers.
• A discrete outcome in a Poisson distribution could be the number of times a phone rings a day or
the number of times a dog barks at night, for instance.
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GRAPH
EXAMPLES
1. Counting the number of customer arrivals at a store in a given hour.
2. Measuring the number of phone calls received at a call center in a specific minute.
3. Analysing the number of accidents at a particular intersection in a day.
4. Observing the number of emails received during a particular hour.
PROBABILITY MASS FUNCTION
• The probability mass function (PMF) of a Poisson distribution, denoted as P(X = k), is
given by:
P(X=k)=e- λ ∗λk/ k!
Here, the key terms are:
λ (lambda): The average rate of occurrence of the events within the given interval.
k: The number of events we are interested in calculating the probability for.
e: Euler's number, approximately equal to 2.71828.
APPLICATIONS OF POISSON DISTRIBUTION
The Poisson distribution is a versatile tool with a wide range of applications:
1. Queueing Theory: It helps model waiting times in various service systems, such as call centers,
manufacturing, and traffic management.
2. Epidemiology: The Poisson distribution is used to model the spread of diseases and the number of
cases in a population.
3. Environmental Science: It can describe the occurrence of natural disasters like earthquakes and
tornadoes.
4. Finance: In risk assessment, it's employed to model the number of insurance claims.
5. Particle Physics: It's used in high-energy physics to analyse the number of particle interactions.
EXAMPLES
• Example 1: A call centre receives an average of 10 calls per minute. What is the
probability of receiving 15 calls in a minute?
• Solution:
• λ=10 (average rate of calls per minute)
• k=15
• P(X=15)=e-10∗101 *5/ 15! ≈0.0346
• So, there is approximately a 3.46% chance of receiving 15 calls in a minute.
EXAMPLES
• On average, there are 2 accidents at a specific intersection each day. What is the
probability of no accidents occurring today?