The number of loan defaults per month at a bank is Poisson distributed.

Name: The number of loan defaults per month at a bank is Poisson distributed.
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The number of loan defaults per month at a bank can be modeled as a Poisson distribution because it represents the count of a number of discrete events (loan defaults) occurring within a fixed interval of time (a month), where these events happen independently of each other and the probability of each event is small.

The Number of Loan Defaults Per Month at a Bank