Poisson distributions are used when there are a number of rare events that occur during a specific period/area, like “number of traffic accidents per month at a busy intersection” or “number of unscheduled admissions per day to a hospital”.
Characteristics of a Poisson Random Variable
- The experiments consists of counting the number of times a certain event occurs during a given unit of time, area, or volume.
- The probabiliy that an event occurs during a unit of time/area/volume is the same for all units.
- The number of events that occur aer independent of the number that occur in other units.
- The mean (or expected) number of events in each unit is denoted by lambda ().
Probability distribution, mean, and variance for Poisson random variables.
\begin{math} p(x) = \frac{\lambda^x e^{-\lambda}}{x!} (x = 0,1,2,…)\\ \mu = \lambda\\ \sigma^2=\lambda \end{math}
where is the mean number of events during a given unit of time/area/volume.