Module 7 · Probability Distributions and Simulation Basics Lesson 63 of 120
Poisson Distribution and Event Counts
Modeling event counts over a stated exposure interval.
Transcript
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Does lambda=2 mean two events per every possible time unit?
Code lab
Run it yourself
The lesson source in 7 languages. Edit it, run TypeScript and Python right here, and compare with the expected output.
/**
* Fintech Math Bootcamp · Lesson 063 of 120
* Poisson Distribution and Event Counts
* Module 07: Probability Distributions and Simulation Basics
*
* Scenario: Modeling event counts over a stated exposure interval
* Rule: P(K=k)=exp(−λ)λᵏ/k!
*
* Try it: Does lambda=2 mean two events per every possible time unit?
*
* Lesson article: https://thefintechbuilder.com/financial-mathematics-statistics-and-data-foundations/probability-distributions-and-simulation-basics/poisson-distribution-and-event-counts/
* Free course: https://courses.thefintechbuilder.com
* Synthetic teaching example, not financial advice or a production library.
*/
export function lesson063() {
const lambda=2;
const result={zero:Math.exp(-lambda),
exactlyThree:Math.exp(-lambda)*lambda**3/6,
mean:lambda,variance:lambda};
return result;
}
export const checkedResult = {"zero":0.1353352832366127,"exactlyThree":0.1804470443154836,"mean":2,"variance":2};
// Run this file directly: npx tsx lessons/07-probability-distributions-and-simulation-basics/063-poisson-distribution-and-event-counts.ts
if (process.argv[1] && import.meta.url.endsWith(process.argv[1].replace(/\\/g, "/").split("/").pop()!)) {
console.log(JSON.stringify(lesson063(), null, 2));
}
Your output
Press Run to execute the code in your browser.
Expected output
{
"zero": 0.1353352832366127,
"exactlyThree": 0.1804470443154836,
"mean": 2,
"variance": 2
}"""
Fintech Math Bootcamp · Lesson 063 of 120
Poisson Distribution and Event Counts
Module 07: Probability Distributions and Simulation Basics
Scenario: Modeling event counts over a stated exposure interval
Rule: P(K=k)=exp(−λ)λᵏ/k!
Try it: Does lambda=2 mean two events per every possible time unit?
Lesson article: https://thefintechbuilder.com/financial-mathematics-statistics-and-data-foundations/probability-distributions-and-simulation-basics/poisson-distribution-and-event-counts/
Free course: https://courses.thefintechbuilder.com
Synthetic teaching example, not financial advice or a production library.
"""
import json
import math
def lesson_063():
lam = 2
return {
"zero": math.exp(-lam),
"exactlyThree": math.exp(-lam) * lam**3 / 6,
"mean": lam,
"variance": lam,
}
if __name__ == "__main__":
print(json.dumps(lesson_063(), indent=2))
Your output
Press Run to execute the code in your browser.
Expected output
{
"zero": 0.1353352832366127,
"exactlyThree": 0.1804470443154836,
"mean": 2,
"variance": 2
}// Fintech Math Bootcamp - Lesson 063 of 120
// Poisson Distribution and Event Counts
// Module 07: Probability Distributions and Simulation Basics
//
// Scenario: Modeling event counts over a stated exposure interval
// Rule: P(K=k)=exp(-lambda)*lambda^k/k!
//
// Try it: Does lambda=2 mean two events per every possible time unit?
//
// Lesson article: https://thefintechbuilder.com/financial-mathematics-statistics-and-data-foundations/probability-distributions-and-simulation-basics/poisson-distribution-and-event-counts/
// Free course: https://courses.thefintechbuilder.com
// Synthetic teaching example, not financial advice or a production library.
import java.util.ArrayList;
import java.util.Arrays;
import java.util.LinkedHashMap;
import java.util.List;
import java.util.Map;
public class Main {
static Map<String, Object> lesson063() {
double lambda = 2;
Map<String, Object> result = new LinkedHashMap<String, Object>();
result.put("zero", Math.exp(-lambda));
result.put("exactlyThree", Math.exp(-lambda) * Math.pow(lambda, 3) / 6);
result.put("mean", lambda);
result.put("variance", lambda);
return result;
}
public static void main(String[] args) {
System.out.println(toJson(lesson063(), ""));
}
// Minimal JSON writer: two-space indent, whole numbers without a decimal point, NaN as null.
static String toJson(Object value, String indent) {
if (value == null) return "null";
if (value instanceof Boolean) return value.toString();
if (value instanceof Number) return formatNumber(((Number) value).doubleValue());
if (value instanceof String) return quote((String) value);
if (value instanceof double[]) {
List<Object> boxed = new ArrayList<Object>();
for (double d : (double[]) value) boxed.add(d);
return toJson(boxed, indent);
}
if (value instanceof Object[]) return toJson(Arrays.asList((Object[]) value), indent);
String inner = indent + " ";
StringBuilder out = new StringBuilder();
if (value instanceof Map) {
Map<?, ?> map = (Map<?, ?>) value;
if (map.isEmpty()) return "{}";
out.append("{\n");
int i = 0;
for (Map.Entry<?, ?> entry : map.entrySet()) {
out.append(inner).append(quote(entry.getKey().toString())).append(": ")
.append(toJson(entry.getValue(), inner));
out.append(++i < map.size() ? ",\n" : "\n");
}
return out.append(indent).append("}").toString();
}
List<?> list = (List<?>) value;
if (list.isEmpty()) return "[]";
out.append("[\n");
for (int i = 0; i < list.size(); i++) {
out.append(inner).append(toJson(list.get(i), inner));
out.append(i + 1 < list.size() ? ",\n" : "\n");
}
return out.append(indent).append("]").toString();
}
static String formatNumber(double x) {
if (Double.isNaN(x) || Double.isInfinite(x)) return "null";
if (x == Math.rint(x) && Math.abs(x) < 1e15) return Long.toString((long) x);
return Double.toString(x);
}
static String quote(String s) {
StringBuilder out = new StringBuilder("\"");
for (char c : s.toCharArray()) {
if (c == '"' || c == '\\') out.append('\\').append(c);
else if (c == '\n') out.append("\\n");
else if (c < 0x20) out.append(String.format("\\u%04x", (int) c));
else out.append(c);
}
return out.append('"').toString();
}
}
No browser runner for Java yet
Read the code here, then run it in your own toolchain or a ready-made cloud workspace.
Expected output
{
"zero": 0.1353352832366127,
"exactlyThree": 0.1804470443154836,
"mean": 2,
"variance": 2
}// Fintech Math Bootcamp · Lesson 063 of 120
// Poisson Distribution and Event Counts
// Module 07: Probability Distributions and Simulation Basics
//
// Scenario: Modeling event counts over a stated exposure interval
// Rule: P(K=k)=exp(−λ)λᵏ/k!
//
// Try it: Does lambda=2 mean two events per every possible time unit?
//
// Lesson article: https://thefintechbuilder.com/financial-mathematics-statistics-and-data-foundations/probability-distributions-and-simulation-basics/poisson-distribution-and-event-counts/
// Free course: https://courses.thefintechbuilder.com
// Synthetic teaching example, not financial advice or a production library.
package main
import (
"encoding/json"
"fmt"
"math"
)
type Lesson063Result struct {
Zero float64 `json:"zero"`
ExactlyThree float64 `json:"exactlyThree"`
Mean float64 `json:"mean"`
Variance float64 `json:"variance"`
}
func lesson063() Lesson063Result {
lambda := 2.0
return Lesson063Result{
Zero: math.Exp(-lambda),
ExactlyThree: math.Exp(-lambda) * math.Pow(lambda, 3) / 6,
Mean: lambda,
Variance: lambda,
}
}
func main() {
out, err := json.MarshalIndent(lesson063(), "", " ")
if err != nil {
panic(err)
}
fmt.Println(string(out))
}
No browser runner for Go yet
Read the code here, then run it in your own toolchain or a ready-made cloud workspace.
Expected output
{
"zero": 0.1353352832366127,
"exactlyThree": 0.1804470443154836,
"mean": 2,
"variance": 2
}// Fintech Math Bootcamp · Lesson 063 of 120
// Poisson Distribution and Event Counts
// Module 07: Probability Distributions and Simulation Basics
//
// Scenario: Modeling event counts over a stated exposure interval
// Rule: P(K=k)=exp(−λ)λᵏ/k!
//
// Try it: Does lambda=2 mean two events per every possible time unit?
//
// Lesson article: https://thefintechbuilder.com/financial-mathematics-statistics-and-data-foundations/probability-distributions-and-simulation-basics/poisson-distribution-and-event-counts/
// Free course: https://courses.thefintechbuilder.com
// Synthetic teaching example, not financial advice or a production library.
#include <cmath>
#include <cstdio>
#include <cstdlib>
#include <iostream>
#include <optional>
#include <stdexcept>
#include <string>
#include <utility>
#include <vector>
// A minimal JSON value, enough to print this lesson's result.
struct Json {
enum class Kind { Null, Bool, Number, String, Array, Object };
Kind kind = Kind::Null;
bool flag = false;
double number = 0.0;
std::string text;
std::vector<std::string> keys; // object keys, parallel to items
std::vector<Json> items; // array elements or object values
Json() = default;
Json(bool value) : kind(Kind::Bool), flag(value) {}
Json(int value) : kind(Kind::Number), number(value) {}
Json(double value) : kind(Kind::Number), number(value) {}
Json(const char* value) : kind(Kind::String), text(value) {}
Json(const std::string& value) : kind(Kind::String), text(value) {}
Json(const std::vector<double>& values) : kind(Kind::Array) {
for (double v : values) items.push_back(Json(v));
}
};
Json jsonArray(const std::vector<Json>& values) {
Json array;
array.kind = Json::Kind::Array;
array.items = values;
return array;
}
Json jsonObject(const std::vector<std::pair<std::string, Json>>& fields) {
Json object;
object.kind = Json::Kind::Object;
for (const auto& field : fields) {
object.keys.push_back(field.first);
object.items.push_back(field.second);
}
return object;
}
// Shortest decimal form that reads back as the same double.
std::string formatNumber(double x) {
if (!std::isfinite(x)) return "null";
char buffer[32];
if (x == std::floor(x) && std::fabs(x) < 1e15) {
std::snprintf(buffer, sizeof buffer, "%.0f", x);
return buffer;
}
for (int precision = 1; precision <= 17; ++precision) {
std::snprintf(buffer, sizeof buffer, "%.*g", precision, x);
if (std::strtod(buffer, nullptr) == x) break;
}
return buffer;
}
std::string quote(const std::string& s) {
std::string out = "\"";
for (char c : s) {
if (c == '"' || c == '\\') { out += '\\'; out += c; }
else if (c == '\n') out += "\\n";
else out += c;
}
return out + "\"";
}
std::string toJson(const Json& value, const std::string& indent = "") {
switch (value.kind) {
case Json::Kind::Null: return "null";
case Json::Kind::Bool: return value.flag ? "true" : "false";
case Json::Kind::Number: return formatNumber(value.number);
case Json::Kind::String: return quote(value.text);
default: break;
}
const bool isObject = value.kind == Json::Kind::Object;
if (value.items.empty()) return isObject ? "{}" : "[]";
const std::string inner = indent + " ";
std::string out = isObject ? "{\n" : "[\n";
for (std::size_t i = 0; i < value.items.size(); ++i) {
out += inner;
if (isObject) out += quote(value.keys[i]) + ": ";
out += toJson(value.items[i], inner);
out += i + 1 < value.items.size() ? ",\n" : "\n";
}
return out + indent + (isObject ? "}" : "]");
}
Json lesson063() {
const double lambda = 2;
return jsonObject({
{"zero", std::exp(-lambda)},
{"exactlyThree", std::exp(-lambda) * std::pow(lambda, 3) / 6},
{"mean", lambda},
{"variance", lambda},
});
}
int main() {
std::cout << toJson(lesson063()) << '\n';
return 0;
}
No browser runner for C++ yet
Read the code here, then run it in your own toolchain or a ready-made cloud workspace.
Expected output
{
"zero": 0.1353352832366127,
"exactlyThree": 0.1804470443154836,
"mean": 2,
"variance": 2
}// Fintech Math Bootcamp · Lesson 063 of 120
// Poisson Distribution and Event Counts
// Module 07: Probability Distributions and Simulation Basics
//
// Scenario: Modeling event counts over a stated exposure interval
// Rule: P(K=k)=exp(−λ)λᵏ/k!
//
// Try it: Does lambda=2 mean two events per every possible time unit?
//
// Lesson article: https://thefintechbuilder.com/financial-mathematics-statistics-and-data-foundations/probability-distributions-and-simulation-basics/poisson-distribution-and-event-counts/
// Free course: https://courses.thefintechbuilder.com
// Synthetic teaching example, not financial advice or a production library.
/// A minimal JSON value, enough to print this lesson's result.
#[allow(dead_code)]
enum Json {
Null,
Bool(bool),
Num(f64),
Str(String),
Arr(Vec<Json>),
Obj(Vec<(String, Json)>),
}
#[allow(dead_code)]
impl Json {
fn obj(fields: Vec<(&str, Json)>) -> Json {
Json::Obj(fields.into_iter().map(|(k, v)| (k.to_string(), v)).collect())
}
fn nums(values: &[f64]) -> Json {
Json::Arr(values.iter().map(|&v| Json::Num(v)).collect())
}
/// Pretty-prints with two-space indentation.
fn pretty(&self, indent: &str) -> String {
let inner = format!("{} ", indent);
match self {
Json::Null => "null".to_string(),
Json::Bool(b) => b.to_string(),
Json::Num(x) => format_number(*x),
Json::Str(s) => quote(s),
Json::Arr(items) if items.is_empty() => "[]".to_string(),
Json::Obj(fields) if fields.is_empty() => "{}".to_string(),
Json::Arr(items) => {
let body: Vec<String> = items
.iter()
.map(|v| format!("{}{}", inner, v.pretty(&inner)))
.collect();
format!("[\n{}\n{}]", body.join(",\n"), indent)
}
Json::Obj(fields) => {
let body: Vec<String> = fields
.iter()
.map(|(k, v)| format!("{}{}: {}", inner, quote(k), v.pretty(&inner)))
.collect();
format!("{{\n{}\n{}}}", body.join(",\n"), indent)
}
}
}
}
fn format_number(x: f64) -> String {
if !x.is_finite() {
"null".to_string()
} else if x == x.trunc() && x.abs() < 1e15 {
format!("{}", x as i64)
} else {
format!("{}", x)
}
}
fn quote(s: &str) -> String {
let mut out = String::from("\"");
for c in s.chars() {
match c {
'"' => out.push_str("\\\""),
'\\' => out.push_str("\\\\"),
'\n' => out.push_str("\\n"),
c => out.push(c),
}
}
out.push('"');
out
}
fn lesson_063() -> Json {
let lambda: f64 = 2.0;
Json::obj(vec![
("zero", Json::Num((-lambda).exp())),
("exactlyThree", Json::Num((-lambda).exp() * lambda.powf(3.0) / 6.0)),
("mean", Json::Num(lambda)),
("variance", Json::Num(lambda)),
])
}
fn main() {
println!("{}", lesson_063().pretty(""));
}
No browser runner for Rust yet
Read the code here, then run it in your own toolchain or a ready-made cloud workspace.
Expected output
{
"zero": 0.1353352832366127,
"exactlyThree": 0.1804470443154836,
"mean": 2,
"variance": 2
}// Fintech Math Bootcamp · Lesson 063 of 120
// Poisson Distribution and Event Counts
// Module 07: Probability Distributions and Simulation Basics
//
// Scenario: Modeling event counts over a stated exposure interval
// Rule: P(K=k)=exp(−λ)λᵏ/k!
//
// Try it: Does lambda=2 mean two events per every possible time unit?
//
// Lesson article: https://thefintechbuilder.com/financial-mathematics-statistics-and-data-foundations/probability-distributions-and-simulation-basics/poisson-distribution-and-event-counts/
// Free course: https://courses.thefintechbuilder.com
// Synthetic teaching example, not financial advice or a production library.
using System;
using System.Collections.Generic;
using System.Linq;
using System.Text.Json;
var options = new JsonSerializerOptions { WriteIndented = true };
Console.WriteLine(JsonSerializer.Serialize(Lesson063(), options));
static object Lesson063()
{
double lambda = 2;
return new
{
zero = Math.Exp(-lambda),
exactlyThree = Math.Exp(-lambda) * Math.Pow(lambda, 3) / 6,
mean = lambda,
variance = lambda,
};
}
No browser runner for C# yet
Read the code here, then run it in your own toolchain or a ready-made cloud workspace.
Expected output
{
"zero": 0.1353352832366127,
"exactlyThree": 0.1804470443154836,
"mean": 2,
"variance": 2
}Prefer your own machine? Every file is in the course repository · open it in Codespaces.
Lesson notes
The rule
P(K=k)=exp(−λ)λᵏ/k!