Lec11 Poisson Distribution

Lec11 Poisson Distribution - Insurance Claims 5 8 or more...

Info iconThis preview shows pages 1–8. Sign up to view the full content.

View Full Document Right Arrow Icon
Poisson Distribution 1
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Poisson Distribution: Examples 2 r.v. X = number of events in an interval Possible values X=0, 1, 2, … r.v. X = number of defects on a square inch of painted surface r.v. X = number of earthquakes in a year r.v. X = number of typographical errors on a page r.v. X = number of customers that arrive in an hour
Background image of page 2
Poisson pdf 3
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
What assumptions lead to this? Totally random! 4 r.v. X = arrivals to NY Penn station per hour (during peak hours) 1. Proportional – if expected arrivals in 1 hour is 5, then expected arrivals in 2 hours is 10 2. Homogeneous – expected arrivals per hour is same, no matter which hour you pick 3. Independent – arrivals from 12:00 to 12:05 is independent of number for any other interval
Background image of page 4
Background image of page 5

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Background image of page 6
Background image of page 7

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Background image of page 8
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: Insurance Claims 5 8 or more in a year means bankruptcy Moreinsurance 6 Ex: arrivals to the Emergency Room 7 The number of arrivals to an emergency room overnight has the Poisson distribution with mean 8.2 per hour. Find the probability of 0 arrivals in an hour. Find the probability of 0 arrivals in an hour given there were 40 arrivals in the preceding hour. (Hint: I flipped a coin and got 10 heads in a row find the probability the next flip is a heads.) Ex: Particulates on a Silicon Wafer 8 The number of defects on a cable has Poisson distribution with mean 0.47 per foot. Find the probability of no defects in 2 inches....
View Full Document

Page1 / 8

Lec11 Poisson Distribution - Insurance Claims 5 8 or more...

This preview shows document pages 1 - 8. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online