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POISSON.DIST

The POISSON.DIST function in Google Sheets calculates the value of the Poisson distribution function (or Poisson cumulative distribution function) for a specified value and mean. This function is commonly used in statistical analysis and probability calculations.

Function Syntax and Parameters

Syntax: POISSON.DIST(x, mean, [cumulative])

Parameters:

  • x: The value at which you want to evaluate the distribution.
  • mean: The average rate at which events occur.
  • cumulative: [Optional] A logical value that indicates whether to calculate the cumulative distribution function (TRUE) or the probability mass function (FALSE). The default value is FALSE.

Step-by-Step Tutorial

  1. Calculate the Poisson distribution function:

    • Example: =POISSON.DIST(3, 5, FALSE)
    • Result: Returns the probability of observing exactly 3 events in a time period with an average rate of 5 events.
  2. Calculate the Poisson cumulative distribution function:

    • Example: =POISSON.DIST(3, 5, TRUE)
    • Result: Returns the probability of observing 3 or fewer events in a time period with an average rate of 5 events.

Use Cases and Scenarios

  1. Insurance Claims: Calculate the probability of a specific number of insurance claims occurring within a given time period based on historical data.
  2. Quality Control: Determine the likelihood of a certain number of defects occurring in a production process.
  3. Queueing Theory: Analyze the probability of a certain number of customers arriving at a service counter within a specified time frame.

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