Glossary
Poisson Distribution
Poisson Distribution
Poisson Distribution is a statistical concept used to model the probability of a specific number of events occurring within a fixed interval of time or space. It is named after the French mathematician, Siméon Denis Poisson, who introduced this concept in the early 19th century.
In simple terms, Poisson Distribution helps us understand the likelihood of events happening when we know the average rate at which they occur. It is commonly used in various fields such as physics, biology, finance, and telecommunications to analyze data and make predictions.
The key characteristic of Poisson Distribution is that it assumes events occur independently and at a constant average rate. It is often applied to situations where events are rare, random, and discrete. Examples include the number of phone calls received at a call center within a specific time frame, the number of accidents occurring on a particular road per day, or the number of customers arriving at a store in an hour.
Mathematically, Poisson Distribution is defined by a single parameter, denoted by lambda (λ), which represents the average rate of events occurring in a given interval. The probability mass function of the Poisson Distribution formula is given by P(X=k) = (e^(-λ) * λ^k) / k!, where X represents the random variable, k represents the number of events, and e is the base of the natural logarithm.
The Poisson Distribution has several important properties, including the mean and variance being equal to λ. This means that the expected value and the spread of the distribution are both determined by the average rate at which events occur.
In conclusion, Poisson Distribution is a statistical concept used to model the probability of a specific number of events occurring within a fixed interval. It provides insights into the likelihood of rare and random events happening, making it a valuable tool in various fields for data analysis and prediction.
A wide array of use-cases
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