Step by step
The question
Question: a website gets an average of 2 orders a minute: what is the probability of exactly 5 orders in 2 minutes?
Poisson counts how many times something happens in a fixed time, when we know the average.
1 Name the numbers
The average is for one minute.
2 minutes is 2 minutes.
So the average for our time is 2 times 2: 4.
Careful!
The average must be for the same time as the question: 4, not 2.
x, the count we want, is 5.
2 Write the formula
The Poisson formula: μ to the power x, times e to the power minus μ, over x factorial.
e is a number, about 2.718.
e to the power minus 4 is about 0.0183.
x factorial multiplies down to 1, and 0 factorial is 1.
3 Put the numbers in
4 to the power 5 is 1024.
5 factorial is 5 times 4 times 3 times 2 times 1: 120.
4 Work it out
1024 times 0.0183, over 120, is about 0.1563.
5 Check
Let's check another way: step up from P of 0.
P of 0 is e to the power minus 4: about 0.0183.
Each next one is the last one times 4, divided by the new x.
P of 1 is about 0.0733.
P of 2 is about 0.1465.
P of 3 is about 0.1954.
P of 4 is about 0.1954.
P of 5 is about 0.1563.
The same!
So it is right!
Let's look back.
First: name the numbers.
Then: write the formula.
Then: put the numbers in.
Then: work it out.
Last: check.