Poisson Distribution
Poisson Distribution
If μ is the average number of successes occurring in a given time interval or region in the Poisson
distribution, then the mean is given as; μ= λ
Variance and Std. Deviation in Poisson’s distribution variance is given as; V=σ 2= λ and standard
deviation is given as; Std. dev.=√ σ 2 =𝜎=√ λ
Assumptions for Poisson distribution
1)The probability that an event will occur in a short interval of time or space is proportional to the size
of the interval.
2)In a very small interval, the probability that two events will occur is close to zero.
3)The probability that any number of events will occur in a given interval is independent of where the
interval begins.
4)The probability of any number of events occurring over a given interval is independent of the number
of events that occurred prior to the interval
Application of Poisson distribution with examples
Poisson distribution is discrete probability distribution that is very useful in situations where the
discrete events occur in a continuous manner. The Poisson processes are generally associated with
time, but they do not have to be. This has a huge application in many practical scenarios like
determining car accidents, number of typing errors on a page, spread of an endangered animal in
Africa, failure of a machine in one month, number of goals in a tournament, and number of patients
arriving in an emergency room between 10 and 11 pm.
Example 1:
A large number of 10ml samples are collected from a lake. The mean number of bacteria in 10 ml of
liquid is 5. Find the that a sample taken has no bacteria.
λ=5 per 10 ml
λ x e− λ
P(x) =
x!
50 e−5
P(0) = =0.0067
0!
Example 2:
At a certain desert area, sandstorms occur at random on average once in every 2 days. Find the
probability that in a particular day, sandstorms occur twice.
λ=1 per 2 days
λ=0.5 per 1 day
λ x e− λ
P(x) =
x!
0.52 e−0.5
P(2) = =0.0758
2!
Example 3:
Consider a computer system with Poisson job-arrival stream at an average of 2 per minute. Determine
the probability that in any one-minute interval there will be exactly 3 jobs.
λ=2 per minutes
λ x e− λ
P(x) =
x!
3 −2
2e
P(3) = =0.1804
3!
Poisson approximation with examples
Poisson distribution can be used as approximation to binomial distribution if number of trials is large,
and the probability of success in any given one is small.
n> 50(n is large) and p< 0.1(p is small) λ =np so that it has the same expected value as the binomial
distribution.
A coin flip, even for 100 trials, should be modelled as a Binomial because n >50 which is 100. One
important distinction is a Binomial occurs for a fixed set of trials (the domain is discrete) while a
Poisson occurs over a theoretically infinite number of trials (continuous domain).
Example 1:
If the percentage of people with diabetes in the area is 0.003, then what is the probability that there will
be no infected person in the 1000 neighbourhood of the district?
n = 1000 > 50
p = 0.003 < 0.1
use Poisson approximation to binomial
P(x) = P (X = x) =nCx P x q n−x
= 1000C0 ×(0.003)0× (1 – 0.003)1000 – 0
=1×1× 0.9971000 = 0.0496
λ = np = 1000 × 0.003 = 3
λ x e− λ
P(x) =
x!
0 −3
3 e
P(0) = = 0.0498
0!
Example 2
It is known that 2% of the cells received by a receptionist are wrong numbers. Use a Poisson
approximation to the binomial distribution to determine the probability that among 250 calls four will
be wrong number.
n = 250 > 50
p = 0.02 < 0.1
use Poisson approximation to binomial
P(x) = P (X = x) =nCx P x q n−x
= 250C4 ×(0.02)4 × (1 – 0.02)250− 4
=1.5888275 E+8×0.00000016× 0.98246 = 0.1755
Relation between Binomial and Poisson distributions
The Poisson distribution is actually a limiting case of a Binomial distribution when the number of
trials, n, gets very large and p, the probability of success, is small. As a rule of thumb, if n > 50, p <
0.1 the Poisson distribution can provide a very good approximation to the binomial distribution.
Binomial distribution as shown below.
P(x) = P (X = x) =nCx P x q n−x
λ
p=
n
Now, if we use this to rewrite P(x) of binomial distribution,
x n−x
λ λ
P(x) = P (X = x) =nCx 1−
n n
Using the standard formula for the combinations, we can further expand things to
n− x
λx λ
P(x)=n(n−1)(n−2)⋯(n−x+1)x!⋅ (1− )
nx n
This binomial formula tends towards the Poisson formula. It should now be relatively easy to see that if
we took the limit as n approaches infinity.
λ x e− λ
limn→∞= P(x) =
x!