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8.What is Poisson Probability distribution? What are the assumptions of Poisson
distribution? Give its important - properties.
(ii) Describe Normal Probability distribution. Discuss the properties of Normal distribution.
Ans: Probability Distributions Explained Like a Story: Poisson & Normal
When we think about life, many events appear uncertain: how many customers will enter a
shop in an hour, how many phone calls will arrive at a call center in a day, or how much a
students height will vary from his classmates. Mathematics has gifted us a powerful tool to
deal with such uncertainties Probability Distributions. Among them, Poisson distribution
and Normal distribution are two shining stars.
Lets travel step by step and understand them in the simplest, story-like manner.
Part I: The Poisson Distribution
A Little Story to Begin
Imagine you are working in a small bakery that sells fresh pastries. Customers do not arrive
in a fixed pattern sometimes they come one by one, sometimes three at a time,
sometimes none for ten minutes. The bakery owner wonders:
On average, if 5 customers arrive every 10 minutes, what is the chance that exactly 7
customers will arrive in the next 10 minutes?
This situation is exactly what Poisson distribution helps us answer. It tells us the probability
of a certain number of events happening in a fixed time or space interval, given that the
events occur randomly but with a known average rate.
Definition
The Poisson Probability Distribution is a discrete probability distribution that gives the
probability of a given number of events happening in a fixed interval of time or space, when
these events occur independently and the average rate is known.
The probability function is:
Where:
X = random variable representing the number of events
x = actual number of events (0,1,2,3,)
λ = average number of events in the given interval