DEFINITION of 'Poisson Distribution'
A statistical distribution showing the frequency probability of specific events when the average probability of a single occurrence is known. The Poisson distribution is a discrete function.
BREAKING DOWN 'Poisson Distribution'
For example, if the average number of people that rent movies on a friday night at a single video store location is 400, a Poisson distribution can answer such questions as, "What is the probability that more than 600 people will rent movies?" Therefore, application of the Poisson distribution enables managers to introduce optimal scheduling systems. One of the most famous historical practical uses of the Poisson distribution was estimating the annual number of Prussian cavalry soldiers killed due to horsekicks. Other modern examples include estimating the number of car crashes in a city of a given size; in physiology, this distribution is often used to calculate the probabilistic frequencies of different types of neurotransmitter secretions.

Probability Distribution
A statistical function that describes all the possible values ... 
Discrete Distribution
The statistical or probabilistic properties of observable (either ... 
Uniform Distribution
In statistics, a type of probability distribution in which all ... 
Frequency Distribution
A representation, either in a graphical or tabular format, which ... 
Distribution Yield
The amount of cash flow received or paid out by an annuity, REIT ... 
Sampling Distribution
A probability distribution of a statistic obtained through a ...

Investing
Find The Right Fit With Probability Distributions
Discover a few of the most popular probability distributions and how to calculate them. 
Investing
What a Normal Distribution Means
Normal distribution describes a symmetrical data distribution, where most of the results lie near the mean. 
Investing
Bet Smarter With The Monte Carlo Simulation
This technique can reduce uncertainty in estimating future outcomes. 
Investing
Financial Forecasting: The Bayesian Method
This method can help refine probability estimates using an intuitive process. 
Financial Advisor
How to Navigate Taxable Mutual Fund Distributions
It's almost time for yearend capital gains distributions for mutual funds. Here's how to monitor them and minimize their tax impact. 
Investing
Scenario Analysis Provides Glimpse Of Portfolio Potential
This statistical method estimates how far a stock might fall in a worstcase scenario. 
Financial Advisor
Stretch Your Savings By Working Into Your 70s
Staying employed a little longer may allow for a more comfortable retirement. 
Investing
The ABCs of Bond ETF Distributions
How do bond exchange traded fund (ETF) distributions work? It’s a question I get a lot. First, let’s explain what we mean by distributions. 
Financial Advisor
Tough Times: Should You Dip Into Your Qualified Plan?
401(k)s, pensions and profitsharing plans can be a source of cash, but there are consequences to this option. 
Investing
Using Normal Distribution Formula To Optimize Your Portfolio
Normal or bell curve distribution can be used in portfolio theory to help portfolio managers maximize return and minimize risk.

Is my nonqualified Roth IRA distribution subject to taxes or early distribution ...
The ordering rules must be applied to determine whether the distribution is subject to income taxes and/or the early distribution ... Read Answer >> 
What are the exceptions to the early distribution penalty for a nonqualified Roth ...
The exceptions are as follows: The distribution is made on or after the date you reach age 59.5 The distribution is made ... Read Answer >>