POISSON DISTRIBUTION
Poisson Process
Suppose that events occur at random throughout an interval. Suppose further that the interval can
be divided into subintervals which are so small that:
1. the probability of more than one event occurring in the subinterval is zero
2. the probability of one event occurring in a subinterval is proportional to the length of the
subinterval
3. an event occurring in any given subinterval is independent of any other subinterval
then the random experiment is known as a Poisson process.
Characteristics of a Poisson random variable
1. The experiments consist of counting the number of times a certain event occurs during a
given unit of time or in a given area or volume (or weight, distance or any other unit of
measurement)
2. The probability that an event occurs in a given unit of time, area or volume is the same for
all the units.
3. The number of events that occur in one unit of time, area or volume is independent of the
number that occurs in other units
4. The mean or expected number of events in each unit is denoted by the Greek letter λor µ
Definition: A random variable X is said to follow Poisson distribution if it assumes only non-
negative values and its probability mass function is
λ is the parameter of the distribution.
λ = Mean number of events during given time, area, volume etc. e = 2.71828
E (X) = μ = λ
σ2=λ
Poisson Approximation to the Binomial Distribution
Assuming that n is large, p is small and that np is constant, the terms
P(X=x) = nCxpxq(n-x)
of a binomial distribution may be closely approximated by the terms
e-λλx
P(X=x) = 𝑋!
of the Poisson distribution for corresponding values of x
Properties of the Poisson Distribution
1. As λ increases the distribution shifts to the right.
2. Mode : When λ is not an integer then unique mode ie m= λ
When λ is an integer then bi modal ie m= λ and m= λ-1
3. Poisson distribution tends to normal distribution as λ becomes large.
Some applications of Poisson distribution
• Number of deaths from a disease
• Number of defective material in packing manufactured by a factory.
• Number of faulty blades in a packet of 100
• Number of air accidents in some unit of time
• Number of printing mistakes at each page of the book.
• Number of cars passing a crossing per unit during busy hours of a day.
• Emission of radioactive particles.