How do you know when to use a Poisson distribution

Victor Wall

Victor Wall

Answered question

2022-01-16

How do you know when to use a Poisson distribution or binomial distribution?

Answer & Explanation

aquariump9

aquariump9

Beginner2022-01-16Added 40 answers

As a short guide
If a mean or average probability of an event happening per unit time etc., is given, and you are asked to calculate a probability of n events happening in a given time etc then the Poisson Distribution is used.
If, on the other hand, an exact probability of an event happening is given and you are asked to calculate the probability of this event happening k times out of n, then the Binomial Distribution must be used.
The Poisson distribution can be derived as a limit of the binomial distribution.
Buck Henry

Buck Henry

Beginner2022-01-17Added 33 answers

The Poisson is used as an approximation of the Binomial if n is large and p is small. As with many ideas in statistics, “large” and “small” are up to interpretation. A rule of thumb is the Poisson distribution is a decent approximation of the Binomial if n > 20 and np < 10.

Do you have a similar question?

Recalculate according to your conditions!

New Questions in College Statistics

Ask your question.
Get an expert answer.

Let our experts help you. Answer in as fast as 15 minutes.

Didn't find what you were looking for?