The Poisson distribution, named after the French mathematician Denis Simon Poisson, is a discrete distribution function describing the probability that an event will occur a certain number of times in a fixed time (or space) interval.
Poisson Distribution Formula
Central to the Poisson distribution is the parameter lambda, which describes the rate at which events are happening. For a Poisson random variable X, lambda is simply the mean number of events x happening per interval. The probability mass function is
Example:
- Number of arrivals at a restaurant
- Number of calls per hour in a call center
Conditions for Poisson Distribution:
- An event can occur any number of times in the defined period of time
- All the events are independent
- The rate of occurrence of events is constant
f(x,λ)=P(X=x)= [(λ^x). (e)^(−λ)/x!]