BAN 001 Chapter Notes - Chapter 7: Binomial Distribution, Poisson Distribution
7 Sep 2016
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Let us assume that we conduct an experiment that consists of counting the number off events that will occur in a specific amount of time, or in a specific area or volume. The number of telephone calls that arrive at a particular exchange in an hour. The number of automobiles that arrive at a toll booth per minute. The number of customers that arrive at a teller window per hour. The number of surface defects per square foot of glass. The number of cherries in a gallon of cherry vanilla ice cream. In all these cases the number of occurrences is distributed according to a poisson distribution as follows: P(x) = xe- / x! for x=0,1,2, where. = mean rate of occurrence e = 2. 71828 which is the base of the natural logarithm system. Suppose 30 customers arrive per hour on average at a teller window of a bank.
