EC255 Lecture Notes - Lecture 8: Poisson Distribution, Exponential Distribution, Probability Distribution
Document Summary
Chapter 5 and 6: poisson and exponential distributions. Poisson random variable: number of successes that occur in a time interval and/or a region of space rather than successes over a certain number of trials like binominal distribution, ex. Number of customers arriving to the bank during a 1 hour period, number of spills in the oil sands of alberta per month: this variable follows poisson distribution, successes in interval can range from 0 to infinity. Poisson distribution: = long-run average, before using poisson tables, make sure time periods are equal, example 1 bank customers arrive randomly on a weekday afternoon at an average of 3. 2 customers every 4 minutes. = 6. 4 customers/4 minutes x = 10 customers/8 minutes: example 2 a real estate office sells 1. 6 houses on an average weekday and sales of houses on weekdays are poisson distributed.
