BUS 295 Lecture Notes - Lecture 11: Probability Distribution, Poisson Distribution, Binomial Distribution
Document Summary
A discrete frequency distribution which gives the probability of a number of independent events occurring in a fixed time/ number of times event occurs in a given area of opportunity . E. g. number of purchases of a product in a year. Number of paint scratches on a car area of opp is car, event is scratches. Interest is in the count of number of times an event occurs in a given window. Probability that the event occurs in one time frame is same for all areas of opportunity. Probability that 2 or more events occur in an area of opportunity approaches 0 as the area of opportunity becomes smaller. Average number of events per area of opportunity is lambda. X= number of events in an area of opportunity. Mean, variance = , standard deviation = . Poisson tables can be used to solve. Excel: =poisson (make sure to put false)
