# MAT 155. Key Concept. September 27, S5.5_3 Poisson Probability Distributions. Chapter 5 Probability Distributions

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1 MAT 155 Dr. Claude Moore Cape Fear Community College Chapter 5 Probability Distributions 5 1 Review and Preview 5 2 Random Variables 5 3 Binomial Probability Distributions 5 4 Mean, Variance and Standard Deviation for the Binomial Distribution 5 5 Poisson Probability Distributions See the TI Calculator tutorials on the Important Links webpage or go directly to STAT.htm See Video Clips "SD Loading Program" and "SD Poisson Distribution" through the Technology link on the Important Links webpage. Key Concept The Poisson distribution is another discrete probability distribution which is important because it is often used for describing the behavior of rare events (with small probabilities). Parameters of the Poisson Distribution The mean is µ. The standard deviation is Poisson Distribution The Poisson distribution is a discrete probability distribution that applies to occurrences of some event over a specified interval. The random variable x is the number of occurrences of the event in an interval. The interval can be time, distance, area, volume, or some similar unit. Requirements of the Poisson Distribution The random variable x is the number of occurrences of an event over some interval. The occurrences must be random. The occurrences must be independent of each other. The occurrences must be uniformly distributed over the interval being used. Parameters The mean is µ. The standard deviation is σ = µ. 1

2 Difference from a Binomial Distribution The Poisson distribution differs from the binomial distribution in these fundamental ways: The binomial distribution is affected by the sample size n and the probability p, whereas the Poisson distribution is affected only by the mean μ. In a binomial distribution the possible values of the random variable x are 0, 1,... n, but a Poisson distribution has possible x values of 0, 1, 2,..., with no upper limit. Poisson as an Approximation to the Binomial Distribution The Poisson distribution is sometimes used to approximate the binomial distribution when n is large and p is small. Rule of Thumb n 100 np 10 Poisson as an Approximation to the Binomial Distribution μ If both of the following requirements are met, n 100 np 10 then use the following formula to calculate µ, Value for μ µ = n p Recap In this section we have discussed: Definition of the Poisson distribution. Requirements for the Poisson distribution. Difference between a Poisson distribution and a binomial distribution. Poisson approximation to the binomial. 2

3 Using a Poisson Distribution to Find Probability. In Exercises 5 8, assume that the Poisson distribution applies, and proceed to use the given mean to find the indicated probability. 244/6. If μ = 0.3, find P(1). Using a Poisson Distribution to Find Probability. In Exercises 5 8, assume that the Poisson distribution applies, and proceed to use the given mean to find the indicated probability. 244/8. If μ = 1/6, find P(0). Use the calculator to find the answer for the values in the formula. Use the Poisson Distribution function in the calculator to find the answer. Syntax: poissonpdf(mean, x) Use the calculator to find the answer for the values in the formula. Use the Poisson Distribution function in the calculator to find the answer. Syntax: poissonpdf(mean, x) 244/10. Low Birth Weight A newborn baby is considered to have a low birth weight if it weighs less than 2500 grams. Such babies often require extra care. Dutchess County, New York, has been experiencing a mean of cases of low birth weight each year. a. Find the mean number of low birth weight babies born each day. b. Find the probability that on a given day, there is more than 1 baby born with a low birth weight. 244/10. Low Birth Weight A newborn baby is considered to have a low birth weight if it weighs less than 2500 grams. Such babies often require extra care. Dutchess County, New York, has been experiencing a mean of cases of low birth weight each year. c. Is it unusual to have more than 1 low birth weight baby born in a day? Why or why not? Since , it is not unusual to have more than 1 low weight baby born on the same day. "Less than or equal to one" is the complement of "greater than one." So, P(x > 1) = 1 P(x < 1) = = This would be rounded to Syntax: poissoncdf(mean, x) "Less than or equal to one" is the complement of "greater than one." So, P(x > 1) = 1 P(x < 1) = = This would be rounded to Syntax: poissoncdf(mean, x) 3

4 244/12. Deaths from Horse Kicks A classical example of the Poisson distribution involves the number of deaths caused by horse kicks to men in the Prussian Army between 1875 and Data for 14 corps were combined for the 20 year period, and the 280 corps years included a total of 196 deaths. After finding the mean number of deaths per corps year, find the probability that a randomly selected corps year has the following numbers of deaths. a. 0 b. 1 c. 2 d. 3 e. 4 The actual results consisted of these frequencies: 0 deaths (in 144 corps years); 1 death (in 91 corps years); 2 deaths (in 32 corps years); 3 deaths (in 11 corps years); 4 deaths (in 2 corps years). Compare the actual results to those expected by using the Poisson probabilities. Does the Poisson distribution serve as a good device for predicting the actual results? 244/12. Deaths from Horse Kicks The actual results consisted of these frequencies: 0 deaths (in 144 corps years); 1 death (in 91 corps years); 2 deaths (in 32 corps years); 3 deaths (in 11 corps years); 4 deaths (in 2 corpsyears). Compare the actual results to those expected by using the Poisson probabilities. Does the Poisson distribution serve as a good device for predicting the actual results? Use the TI calculator to generate the probabilities as shown in the screens on the right. 244/12. Deaths from Horse Kicks The actual results consisted of these frequencies: 0 deaths (in 144 corps years); 1 death (in 91 corps years); 2 deaths (in 32 corps years); 3 deaths (in 11 corps years); 4 deaths (in 2 corps years). Compare the actual results to those expected by using the Poisson probabilities. Does the Poisson distribution serve as a good device for predicting the actual results? You may use Statdisk software to generate the Poisson Distribution values as shown below. The Excel program used here is available through the Technology section of the Important Links webpage or directly at PoissonDist.xls Since the actual values ( f ) are close to the Expected values, the Poisson Distribution is a good device for predicting the actual results. 4

5 245/14. Disease Cluster Neuroblastoma, a rare form of malignant tumor, occurs in 11 children in a million, so its probability is Four cases of neuroblastoma occurred in Oak Park, Illinois, which had 12,429 children. a. Assuming that neuroblastoma occurs as usual, find the mean number of cases in groups of 12,429 children. b. Find the probability that the number of neuroblastoma cases in a group of 12,429 children is 0 or 1. c. What is the probability of more than one case of neuroblastoma? d. Does the cluster of four cases appear to be attributable to random chance? Why or why not? 245/14. Disease Cluster c. What is the probability of more than one case of neuroblastoma? d. Does the cluster of four cases appear to be attributable to random chance? Why or why not? You may save work by storing the mean and using the storage name in the distribution function as shown on the right. After rounding off, this answer will be the same: /16. Life Insurance There is a probability that a randomly selected 30 year old male lives through the year ( based on data from the U. S. Department of Health and Human Services). A Fidelity life insurance company charges \$161 for insuring that the male will live through the year. If the male does not survive the year, the policy pays out \$100,000 as a death benefit. Assume that the company sells 1300 such policies to 30 year old males, so it collects \$209,300 in policy payments. The company will make a profit if the number of deaths in this group is two or fewer. a. What is the mean number of deaths in such groups of 1300 males? b. Use the Poisson distribution to find the probability that the company makes a profit from the 1300 policies. c. Use the binomial distribution to find the probability that the company makes a profit from the 1300 policies, then compare the result to the result found in part (b). 245/16. Life Insurance b. Use the Poisson distribution to find the probability that the company makes a profit from the 1300 policies. c. Use the binomial distribution to find the probability that the company makes a profit from the 1300 policies, then compare the result to the result found in part (b). To four decimal places, the two answers are the same: We see that both n > 100 and np < 10 are true because n = 1300 and p = to yield np = 1300(0.0014) = Thus, the Poisson probability may be used to estimate the Binomial probability. 5

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