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.

Discrete Distribution
The statistical or probabilistic properties of observable (either ... 
Probability Distribution
A statistical function that describes all the possible values ... 
Sampling Distribution
A probability distribution of a statistic obtained through a ... 
T Distribution
A type of probability distribution that is theoretical and resembles ... 
Normal Distribution
A probability distribution that plots all of its values in a ... 
Distribution
1. When trading volume is higher than that of the previous day ...

Fundamental Analysis
Find The Right Fit With Probability Distributions
Discover a few of the most popular probability distributions and how to calculate them. 
Term
What a Normal Distribution Means
Normal distribution describes a symmetrical data distribution, where most of the results lie near the mean. 
Professionals
Distribution of Returns
Distribution of Returns 
Professionals
Common Probability Distribution Properties
CFA Level 1  Common Probability Distributions  Properties 
Professionals
Common Probability Distributions
CFA Level 1  Common Probability Distributions  Basics 
Active Trading Fundamentals
Bet Smarter With The Monte Carlo Simulation
This technique can reduce uncertainty in estimating future outcomes. 
Retirement
403(b) Plan: Distributions
By Denise Appleby Generally, amounts received by an employee as a distribution from a 403(b) account are taxable as ordinary income to the employee. If the distribution occurs when the employee ... 
Professionals
Basic Statistical Calculations
CFA Level 1  Statistical Concepts And Market Returns  Basic Calculations 
Taxes
401(k) And Qualified Plans: Distributions
By Denise ApplebyGenerally, the law requires plans to pay retirement benefits no later than the time an employee reaches normal retirement age, and many plans provide earlier payments under certain ... 
Professionals
Calculations
Calculations

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 >> 
What are the advantages of having fewer distribution channels?
Understand what a distribution channel is and how companies leverage them to sell products. Learn about the advantages of ... Read Answer >> 
How are distribution channels generally organized?
Find out how distribution channels are commonly organized, and learn about the most important elements in the distribution ... Read Answer >> 
What are some ways to make a distribution channel more efficient?
Understand what a distribution channel is and how companies use them to move product. Learn how to make a distribution channel ... Read Answer >> 
What is the difference between a direct and an indirect distribution channel?
Learn about the primary differences between direct and indirect distribution channels, and under what circumstances a company ... Read Answer >>