🏠
Guest Not signed in

Poisson approximation: rare events made mental

Many independent rare events $\approx$ Poisson with mean equal to the expected count. Lets you estimate Birthday Problem variants in your head.

Method · Poisson Approximation
Prereqs: Binomial
Intro
Poisson distribution PMFs at lambda = 1, 4, 10 β€” showing how the bar-chart shape shifts and broadens with the rate parameter.
User:Skbkekas, CC BY 3.0 · CC-BY-3.0 · Wikimedia Commons

When you have many trials with small per-trial probability — defects in a production batch, complaints from a customer base, calls in a call centre — the binomial $\mathrm{Bin}(n, p)$ is well-approximated by $\mathrm{Pois}(\lambda)$ with $\lambda = np$. The Poisson PMF $e^{-\lambda}\lambda^k/k!$ is mental-math friendly for small $k$, especially once you memorize $1/e \approx 0.368$. Most “at least one,” “at least three,” or “exactly $k$” rare-event questions reduce to a 30-second lookup.

βœ“ Intro Β· expand
Independent · Legal