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POISSON

The POISSON function in Google Sheets is used to calculate the probability of a certain number of events occurring within a specified interval. It is commonly used in statistical analysis to model the occurrence of rare events. Dive into our comprehensive guide to understand its syntax and application.

Function Syntax and Parameters

Syntax: POISSON(x, mean, cumulative)

Parameters:

  • x: The number of events to calculate the probability for.
  • mean: The average number of events that occur in the given interval.
  • cumulative: [Optional] A logical value that defines whether to return the cumulative distribution function or the probability mass function. Default is FALSE.

Step-by-Step Tutorial

  1. Using POISSON to calculate probability mass function:

    • Example: =POISSON(3, 5, FALSE)
    • Result: The probability of having exactly 3 events occurring in an interval with an average of 5 events is approximately 0.140373895

  2. Using POISSON to calculate cumulative distribution function:

    • Example: =POISSON(3, 5, TRUE)
    • Result: The probability of having at most 3 events occurring in an interval with an average of 5 events is approximately 0.184736755

Use Cases and Scenarios

  1. Insurance Analysis: Calculate the probability of a certain number of claims occurring in a given period.
  2. Inventory Management: Estimate the probability of a specific number of items being sold in a given time frame.
  3. Quality Control: Assess the probability of a certain number of defective products occurring in a production batch.

Related Functions

  • POISSON.DIST: Calculate the probability mass function or the cumulative distribution function of a Poisson distribution.

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