WST02 · Module
The binomial and Poisson distributions
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 , sets everything: .
≈ 35 minScaling rates and sums
If events happen at per hour, they happen at per half-hour: scale with the interval. And two independent Poisson streams combine into one, with the rates simply added.
≈ 30 minPoisson and normal approximations
Two shortcuts. A binomial with many trials and a small success probability behaves like . A Poisson with a large mean behaves like , as long as you remember the continuity correction.
≈ 35 min