Poisson Distribution Practical Uses of the Poiss

A Poisson distribution is a tool that helps to predict the probability of certain events A textbook store rents an
happening when you know how often the event has occurred. It gives us the probability of a can predict the probabilit
given number of events happening in a fixed interval of time. Saturday nights. Another e
the average number of di
Calculating the Poisson Distribution certain day having more cu
The Poisson Distribution pmf is: P(x; μ) = (e-μ * μx) / x! Because of this applic
make forecasts about the
year. In business, overstoc

Likewise, having too few

Source were not able to maxim
businessmen are able to
https://www.statisticshowto.com/probability-and-statistics/statistics-definitions/probability-distribution/poisson-distribution/
purchase more stock. Hot
https://ned.ipac.caltech.edu/level5/Berg/Berg5.html#:~:text=%3D%20(np)1%2F2,of%20successes%20is%20%C2%B5%2C%20e
could hire extra temporar
plans just in case the
With the Poisson distributi
Formula business earning good pro
Excel =POISSON.DIST(X,MEAN, 0 or 1)
x = number of successful
experiments to analyze.
Probability of 3 people being
infected.
Lambda(λ) = Mean and Variance.
Standard deviation = sqrt(λ)
 Practical Uses of the Poisson Distribution
A textbook store rents an average of 200 books every Saturday night. Using this data, you
can predict the probability that more books will sell (perhaps 300 or 400) on the following
Saturday nights. Another example is the number of diners in a certain restaurant every day. If
the average number of diners for seven days is 500, you can predict the probability of a
certain day having more customers.
Because of this application, Poisson distributions are used by businessmen to
make forecasts about the number of customers or sales on certain days or seasons of the
year. In business, overstocking will sometimes mean losses if the goods are not sold.

Likewise, having too few stocks would still mean a lost business opportunity because you
were not able to maximize your sales due to a shortage of stock. By using this tool,
businessmen are able to estimate the time when demand is unusually higher, so they can
tribution/poisson-distribution/
purchase more stock. Hotels and restaurants could prepare for an influx of customers, they
es%20is%20%C2%B5%2C%20etc.
could hire extra temporary workers in advance, purchase more supplies, or make contingency
plans just in case they cannot accommodate their guests coming to the area.
With the Poisson distribution, companies can adjust supply to demand in order to keep their
business earning good profit. In addition, waste of resources is prevented.
a)
X= 1
λ= 4.5

P( X = 1) = 0.04999
0.04999

b) AT MOST ~ cumulative = 1 P(X <= 2) C) P( 4 or more cases) = P( X >= 4)

x = 0,1,2 Probability principle P(X = 0) + …..... P( X
λ= 4.5 1 - p( X <= 3)

P(x = 0) = 0.011109 Excel 0.173578 P(x = 0) = 0.011109

P(X = 1) = 0.04999 P(X = 1) = 0.04999
P(X = 2) = 0.112479 P(X = 2) = 0.112479
Answer 0.173578 P(X = 3) 0.168718
P(X <= 3) 0.342296

Answer = 0.6577
 more cases) = P( X >= 4) d)
y principle P(X = 0) + …..... P( X = n) = 1 Mean number = λ = 4.5
Standard deviation = 2.12132

Excel 0.342296 Poisson: Mean = Variance

Answer = 0.6577
a)
λ=n*p
n= 2000
p= 0.0085

λ= 17

b) p ( X <= 5 ) c) P(X = 15) + ….. + P(X = 20)

λ= 17

x P(X = x) How many out of a 2000 x P(X = x)

0 4.1399377E-08 1.349083 15 0.090621
1 7.0378941E-07 16 0.096285
2 5.98221E-06 17 0.096285
3 3.389919E-05 18 0.090935
4 0.00014407156 19 0.081363
5 0.0004898433 20 0.069159
Answer 0.00067454144 Answer 0.524648
0.067% 52.46%
5) + ….. + P(X = 20)