Tag : statistics


Relationship between Binomial and Poisson distributions

In this post, we are going to discuss the Relationship between Binomial and Poisson distributions. We know that Poisson distribution is a limit of Binomial distribution for a large n (number of trials) and small p (independent probability for each trial) values. A large number of trials n with very small probability p indicates a rare event in a binomial distribution. Considering this, we will simulate these distributions and then we will create a  CDF (cumulative distributed function) plot of Binomial and Poisson distributions. It will help us to understand the similarity between a Poisson experiment and a rare event Binomial experiment.

In this post, we will not be going into the mathematical details of Binomial and Poisson distributions. However, we will be using NumPy’s random module available in Python to simulate these distributions using a technique called bootstrapping.

Relationship between Binomial and Poisson distributions

Let’s start by understanding the … More