Poisson distribution

Statistics.

A probability model used where discrete events occur in a continuum.

For example, the number of business interruptions occurring in a given time period.

The Poisson distribution can be an appropriate model for processes where:

1. Continuous observation is needed, rather than a finite number of independent trials.
2. The random variable takes a positive whole number (integer) value, with no upper limit.
3. The expected number of occurrences is known or can be estimated, and
4. Primary interest is in the number of times an event occurs within a particular period.

See also

• Discrete random variable
• Binomial distribution
• Frequency distribution
• Probability