What is a Poisson Distribution?

A Poisson distribution refers to a statistical distribution reflecting the possible number of times in which an event would occur within a given timeframe. It is utilized for independent events that happen at a consistent rate within a specific interval of time. The Poisson distribution is a discrete function, which means that the event can only be measured as occurring or not as occurring. This means that the variable can be measured in whole numbers alone. Fractional happenings of the event aren't a part of the model.

How is a Poisson Distribution Used?

For instance, supposing the average number of individuals who rent movies on a Friday night in just one code store is 400, a Poisson distribution is capable of answering such questions as, "What is the likelihood that above 600 individuals would rent movies?" Thus, applying Poisson distribution makes it possible for managers to introduce optimal scheduling systems. A major prominent historical, practical function of the Poisson distribution was the estimation of the annual number of Prussian cavalry soldiers who were killed from horse-kicks. Other modern instances include estimating the number of auto crashes in a city of a specific size; in physiology, this distribution is usually utilized for calculating the probabilistic frequencies of various neurotransmitter secretion types.