Salam Academy
Paper 3 · Module

Poisson distribution

3 subtopics≈ 100 min in total
  1. Poisson probabilities

    Rare, random events in a fixed interval, such as calls per hour, typos per page or meteors per night, follow the Poisson distribution. One number, the average rate λ\lambda, sets everything: P(X=r)=e−λλrr!P(X=r)=e^{-\lambda}\dfrac{\lambda^r}{r!}.

    ≈ 35 min
  2. Scaling rates and sums

    If events happen at 44 per hour, they happen at 22 per half-hour: scale λ\lambda with the interval. And two independent Poisson streams combine into one, with the rates simply added.

    ≈ 30 min
  3. Poisson and normal approximations

    Two shortcuts. A binomial with many trials and a small success probability behaves like Po(np)\text{Po}(np). A Poisson with a large mean behaves like N(λ,λ)N(\lambda,\lambda), as long as you remember the continuity correction.

    ≈ 35 min