Poisson Approximations of Binomials
When can I use a Poisson distribution to approximate a binomial distribution?
- A binomial distribution can be approximated by a Poisson distribution provided
- n is large
- p is small
- There is no firm rule for what 'large' and 'small' mean here
- is a good guide for 'large '
- usually the value of should be
- The mean to use in the approximation can be calculated by:
- This gives the Poisson the same mean as the binomial
- Recall that for the binomial distribution
- the mean is
- the variance is
- If is large but is near to 1, consider modelling the number of failures,
-
- will be small
- A Poisson approximation can then be used
-
- The Poisson distribution is derived from the binomial distribution by letting n become infinitely large and p become infinitely small
Examiner Tip
An exam question will generally state if you need to use a Poisson approximation
Worked example
It is known that one person in a thousand who checks a revision website will choose to subscribe. Given that the website received 3000 hits yesterday, use a Poisson approximation to find the probability that more than 5 people subscribed.