Microsoft Excel Data Analysis and Business Modeling (Office 2021 and Microsoft 365), 7th Edition

Chapter 61

The Poisson and exponential random variable

Questions answered in this chapter:

• What is the Poisson random variable?

• How do I compute probabilities for the Poisson random variable?

• If the number of customers arriving at a bank is governed by a Poisson random variable, what random variable governs the time between arrivals?

Answers to this chapter’s questions

What is the Poisson random variable?

The Poisson random variable is a discrete random variable that is useful for describing probabilities for situations in which events (such as customer arrivals at a bank or orders placed for a product) have a small probability of occurring during a short time interval. More specifically, during a short time interval, denoted as t, either ...