Poisson Distribution
Categories: Metrics
For you those of you who remember some of the weird vocab you learned in high school French, you’re probably wondering why we’re making a distribution of fish.
Eh...because we can.
And then there’s the Poisson distribution, which is a distribution (really just a formula) we can use to predict how likely it is that an event will happen a certain number of times in a specified time period.
Let’s say that we know we sell an average of ten cars a week at our little dealership. Knowing just that average number of car sales (ten) in a fixed time period (one week), we can predict how likely it is that we sell thirteen cars in a week, or eight cars in a week, or twelve cars in a week...using the Poisson probability function.