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Finding Poisson Probabilities-Excel definitions

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  • Poisson Distribution
    A probability model for counting the number of events in a fixed interval, given a known average rate.
  • Excel Function
    A built-in tool that automates calculations, requiring specific inputs called arguments.
  • POISSON.DIST
    An Excel function used to compute probabilities for discrete events based on a given mean rate.
  • Argument
    A value or setting provided to a function to specify what calculation to perform.
  • Occurrence
    A single event or instance being counted in a probability scenario.
  • Mean
    The average rate at which events happen, often represented by the Greek letter lambda (λ).
  • Lambda
    A parameter representing the expected number of events in a Poisson process.
  • Cumulative Probability
    The chance that a random variable is less than or equal to a specific value.
  • Exact Probability
    The likelihood that a random variable takes on one specific value.
  • Complement Rule
    A method for finding the probability of an event by subtracting the probability of its opposite from one.
  • Discrete Random Variable
    A variable that can take on only specific, separate values, often representing counts.
  • Formula Bar
    An area in Excel where functions and calculations are entered or edited.
  • Cell Reference
    A way to point to a specific location in a spreadsheet for use in calculations.
  • Statistical Process Control
    A business analytics method for monitoring and controlling processes using probability models.