5/12/2021 Difference Between Binomial and Poisson Distribution (with Comparison Chart) - Key Differences

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Di erence Between Binomial and Poisson

Distribution
Last updated on September 9, 2017 by Surbhi S

The binomial distribution is one, whose possible number of outcomes are

two, i.e. success or failure. On the other hand, there is no limit of possible
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5/12/2021 Difference Between Binomial and Poisson Distribution (with Comparison Chart) - Key Differences

outcomes in Poisson distribution

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The theoretical probability distribution is de ned as a function which assigns

a probability to each possible outcomes of the statistical experiment. The
probability distribution can be discrete or continuous, where, in the discrete
random variable, the total probability is allocated to different mass points
while in the continuous random variable the probability is distributed at
various class intervals.

Binomial distribution and Poisson distribution are two discrete probability

distribution. Normal distribution, student-distribution, chi-square distribution,
and F-distribution are the types of continuous random variable. So, here we
go to discuss the difference between Binomial and Poisson distribution. Have
a look.

Content: Binomial Distribution Vs Poisson

Distribution
1. Comparison Chart
2. De nition
3. Key Differences
4. Conclusion

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5/12/2021 Difference Between Binomial and Poisson Distribution (with Comparison Chart) - Key Differences

Comparison Chart

BASIS FOR BINOMIAL

POISSON DISTRIBUTION
COMPARISON DISTRIBUTION

Meaning Binomial distribution is Poisson Distribution gives the

one in which the count of independent events
probability of repeated occur randomly with a given
number of trials are period of time.
studied.

Nature Biparametric Uniparametric

Number of Fixed In nite

trials

Success Constant probability In nitesimal chance of

success

Outcomes Only two possible Unlimited number of possible

outcomes, i.e. success or outcomes.
failure.

Mean and Mean > Variance Mean = Variance

Variance

Example Coin tossing experiment. Printing mistakes/page of a

large book.

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5/12/2021 Difference Between Binomial and Poisson Distribution (with Comparison Chart) - Key Differences

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De nition of Binomial Distribution

Binomial Distribution is the widely used probability distribution, derived from
Bernoulli Process, (a random experiment named after a renowned
mathematician Bernoulli). It is also known as biparametric distribution, as it is
featured by two parameters n and p. Here, n is the repeated trials and p is
the success probability. If the value of these two parameters is known, then it
means that the distribution is fully known. The mean and variance of the
binomial distribution are denoted by µ = np and σ2 = npq.

P (X = x) = nCx px qn-x, x = 0,1,2,3…n

= 0, otherwise

An attempt to produce a particular outcome, which is not at all certain and

impossible, is called a trial. The trials are independent and a xed positive
integer. It is related to two mutually exclusive and exhaustive events; wherein
the occurrence is called success and non-occurrence are called failure. p
represents the probability of success while q = 1 – p represents the
probability of failure, which does not change throughout the process.

De nition of Poisson Distribution

In the late 1830s, a famous French mathematician Simon Denis Poisson
introduced this distribution. It describes the probability of the certain number

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5/12/2021 Difference Between Binomial and Poisson Distribution (with Comparison Chart) - Key Differences

of events happening in a xed time interval. It is uniparametric distribution as

it is featured by only one parameter λ or m. In Poisson distribution mean is
denoted by m i.e. µ = m or λ and variance is labelled as σ2 = m or λ. The
probability mass function of x is represented by:

where e = transcendental quantity, whose approximate value is 2.71828

When the number of the event is high but the probability of its occurrence is
quite low, poisson distribution is applied. As for example, Number of
insurance claims/day on an insurance company.

Key Di erences Between Binomial and

Poisson Distribution
The differences between binomial and poisson distribution can be
drawn clearly on the following grounds:

1. The binomial distribution is one in which the probability of repeated

number of trials is studied. A probability distribution that gives the
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5/12/2021 Difference Between Binomial and Poisson Distribution (with Comparison Chart) - Key Differences

count of a number of independent events occur randomly within a

given period, is called probability distribution.

2. Binomial Distribution is biparametric, i.e. it is featured by two

parameters n and p whereas Poisson distribution is uniparametric,
i.e. characterised by a single parameter m.

3. There are a xed number of attempts in the binomial distribution.

On the other hand, an unlimited number of trials are there in a
poisson distribution.

4. The success probability is constant in binomial distribution but in

poisson distribution, there are an extremely small number of
success chances.

5. In a binomial distribution, there are only two possible outcomes, i.e.

success or failure. Conversely, there are an unlimited number of
possible outcomes in the case of poisson distribution.

6. In binomial distribution Mean > Variance while in poisson

distribution mean = variance.

Conclusion
Apart from the above differences, there are a number of similar aspects
between these two distributions i.e. both are the discrete theoretical
probability distribution. Further, on the basis of the values of parameters,
both can be unimodal or bimodal. Moreover, the binomial distribution can be
approximated by the poisson distribution, if the number of attempts (n) tends
to in nity and success probability (p) tends to 0 so that m = np.

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5/12/2021 Difference Between Binomial and Poisson Distribution (with Comparison Chart) - Key Differences

Statistical Significance
What Is It?
The American Statistician vs.
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Comments

Srinithi says
December 18, 2017 at 8:46 am

Its wortthy

Reply

Catherine says
March 12, 2018 at 4:03 am

Thank you – this was helpful.

Reply

Asad Ashraf Karel says

July 6, 2020 at 10:50 am

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5/12/2021 Difference Between Binomial and Poisson Distribution (with Comparison Chart) - Key Differences

A VERY GOOD AND HELPFUL CONTENT. IT’S REALLY WORTHY

AND COMPREHENSIVE TO STUDY.

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