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The Significance of Poisson Distribution in Statistics | Hashtag Statistics

The very first thing a statistician wants to know before diving deep into some analysis is the distribution of given data-set.

How study of distribution of any data-set becomes so dominantly prerequisite for any statistical analysis?

The answer is simple!

For example, if your data-set is Normally distributed, you can easily know what's next using it's different parameters such as Mean and Standard Deviation.

68% of the observations are within one Standard Deviations of the Mean, 95% are within two Standard Deviations, and 99.7% are within three Standard Deviations.

The problem is, in this diverse world, we have diverse data-set too!

Not every data-set can have symmetric distribution with a characteristic of 'bell' shape. Additionally Normal Distribution describes only about continuous data. What if our data is binary or discrete? Well, in this case, we have other distributions e.g. Binomial Distribution, Poisson Distribution.

So, what makes Poisson Distribution unique in…

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