Poisson as the Limit of Binomial Distribution
Theorem
Let be a binomial distributed random variable with success rate in trials. If is and remains fixed, then is a Poisson distributed random variable with rate .
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Apr 23, 20241 min read
Let X be a binomial distributed random variable with success rate p in n trials. If n>20 is and p<0.05 remains fixed, then X is a Poisson distributed random variable with rate λ=np.