The Poisson probability distribution provides a good approximation to binomial probabilities when n is large and = np is small, preferably with np

Question

The Poisson probability distribution provides a good approximation to binomial probabilities when n is large and  = np is small, preferably with np < 7.

Quizplus · Accepted Answer

This statement is true. The Poisson distribution can be used as an approximation of the binomial distribution when the sample size is large and the probability of success is small. If np (the expected number of successes) is less than 7, the Poisson distribution provides a good approximation to the binomial distribution.

The Poisson Probability Distribution Provides a Good Approximation to Binomial