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A COMPLETE BEGINNER'S GUIDE TO POISSON DISTRIBUTION (It's the beginner that's complete, not the guide)

fish picture If you toss a coin ten times the probability of getting heads is 50%. You may get eight heads and two tails, but that's only because the sample is small. If you tossed it 100 times or 1000 times your result would be nearer to 50%. So forget about the actual numbers for a moment - the statistical probability is reckoned to be 50%.

Now suppose you had a small square room with all the floor covered with 100 open topped boxes. If you threw 100 tennis balls into the air randomly, they would all land in the boxes. The chances of them all going into one box is very remote. The chances of 100 balls going into a separate box each is very remote. So what is the expectation? Is it possible that the number of empty boxes is going to be a fixed amount in statistical terms? And the number of boxes containing one ball? If it is a fixed number, what is it? Would you guess that 25% would be empty? 33.3%? 50%?

In fact the probabilities here are fixed. In the same way as tossing a coin, the actual result may not be too accurate with 100 boxes but it will be with 10,000 or 1,000,000. And the results are found in Poisson distribution tables.

Say you have 10,000 boxes and 10,000 balls. The number of empty boxes will be 3679. And the weird thing is that the number of one-to-the-box balls is also 3679. The second weird thing is that the number of two-to the-box balls is also 3679 and they will occupy 1839 boxes. Then the number of three-to-the-box balls is also 1839 and they will occupy 613 boxes. The number of four-to-the-box balls is also 613 and they will occupy 155 boxes. I'll set it out in a table:

3679 boxes have 0 balls in each. Total number of balls in these boxes is 0
3679 boxes have 1 ball in each. Total number of balls in these boxes is 3679
1839 boxes have 2 balls in each. Total number of balls in these boxes is 3678
613 boxes have 3 balls in each. Total number of balls in these boxes is 1839
153 boxes have 4 balls in each. Total number of balls in these boxes is 612
31 boxes have 5 balls in each. Total number of balls in these boxes is 155
5 boxes have 6 balls in each. Total number of balls in these boxes is 30
1 box has 7 balls in it Total number of balls in this box is 7
10000 boxes total     and total balls is - 10000

There are naturally some slight inaccuracies here because the numbers are all rounded. If you enter the formula POISSON(0,1,0) in a spreadsheet, the actual number returned is 0.367879441171442322.

The rule is that
the number of x-to-the-box balls = the number of (x minus 1)-to-the-box boxes.

So suppose you're a fledgling service provider company and so far you've only got one telephone line. Let's say people take a minute to log in, from the beginning of each minute to the end of the same minute. So in 100 minutes you can log in 100 people. If they all do it sequentially there's no queue anywhere and everybody is happy. But because they are going to do it at random, there are going to be queues and the poisson thing will predict the queues. In fact it will predict that 36 people are served straight away, Another 36 will be in a short queue waiting for one other. 18 people will be third in the queue, 6 will be fourth and 1 will be fifth. And I think it means, correct me if I'm wrong, that 36% of the time the line is standing idle. More or less.

I'd be very pleased if some expert would cast an eye over these calculations and let me know if I've got it right.

It's nothing to do with fish by the way, but a French mathematician called Simeon-Denis Poisson.

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