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Poisson distribution

shivapillai's Profile Uploaded by Shiva Pillai, 3 year(s) ago .
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Categories: Lecture Videos
Tags: Finance, Quants, Statistics
 
 

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The Poisson is a classic distribution used in operational risk. It often fits (describes) random variables over time intervals. For example, it might try to characterize the number of low severity, high frequency (HFLS) loss events over a month or a year. It is a discrete function that conveniently only needs one parameter: lambda, which is both the mean and the variance.
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