BUSS1020 Lecture 5: BUSS1020-Lec-5.1
22 Aug 2018
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Document Summary
Applies if interest is in the no. of times an event occurs in a given area of opportunity . No clear upper limit on that no. Area of opportunity a continuous interval of time, area, volume, etc. More than 1 occurrence of an event can occur. E. g. no. of computer crashes (event of interest) in a day (area of opportunity), no. of purchases of a product (event of interest) in a year (area of opportunity) Interest is in the count of no. of times an event occurs in a given area/time/window of opportunity. Probability that an event occurs in one area of opportunity is the same for all areas of opportunity just like the constant probability in binomial distribution. Probability that 2 or more events occur in an area of opportunity approaches zero as area of opportunity becomes smaller do not observe 2 events happening simultaneously, e. g. customers arrive at the bank one-by-one.
