Poisson Distribution

Poisson Distribution is a statistical tool used in business intelligence and data analytics to predict the probability of events that happen infrequently. Imagine you run a small call center and want to guess how many calls you’ll get on any given day. If you know the average number of calls from historical data, a Poisson Distribution can help forecast the likelihood of receiving a certain number of calls on a future day, even if the numbers vary a lot from day to day.

This kind of forecasting is super useful in various business scenarios, like planning inventory for products that don’t sell consistently or scheduling staff for unexpected rushes or slow periods. It’s all about understanding and managing the unpredictable nature of some business activities.

The Poisson Distribution is particularly handy when dealing with a large number of possible events but a low probability of any single one occurring. It allows businesses to manage resources wisely, prepare for the unexpected, and maintain smooth operations, even when faced with the uncertainty of rare or random events.