Probability Theory #14: Poisson Distribution

The Poisson Distribution is a discrete probability distribution. This type of distribution represents values that are not continuous, appearing as whole numbers on the x-axis. Thus, in our data, we will not observe decimal values.

It’s essential to understand that we do not artificially convert the data into whole numbers or decimals. For instance, we do not receive 7.5 emails a day, although one might interpret the 0.5 as half an email sent or received. Similarly, we do not sell 1.5 phones, even though the 0.5 might represent a sale that is pending completion. Therefore, it’s important to remember that in a Poisson Distribution, decimals in the raw data, regardless of our interpretations, do not yield meaningful interpretations in reality.

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