The general rule of thumb to use Poisson approximation to binomial distribution is that the sample size n is sufficiently large and p is sufficiently small such that λ = np (finite). More importantly, since we have been talking here about using the Poisson distribution to approximate the binomial distribution, we should probably compare our results. The Poisson inherits several properties from the Binomial. This website uses cookies to ensure you get the best experience on our site and to provide a comment feature. \end{aligned} Example The number of misprints on a page of the Daily Mercury has a Poisson distribution with mean 1.2. The theorem was named after Siméon Denis Poisson (1781–1840). Bounds and asymptotic relations for the total variation distance and the point metric are given. Examples. \dfrac{e^{-\lambda}\lambda^x}{x!} In many applications, we deal with a large number n of Bernoulli trials (i.e. When is binomial distribution function above/below its limiting Poisson distribution function? \end{aligned} \begin{aligned} The Poisson(λ) Distribution can be approximated with Normal when λ is large.. For sufficiently large values of λ, (say λ>1,000), the Normal(μ = λ,σ 2 = λ) Distribution is an excellent approximation to the Poisson(λ) Distribution. V(X)&= n*p*(1-p)\\ $$, Suppose 1% of all screw made by a machine are defective. &=4000* 1/800\\ Poisson Approximation to Binomial is appropriate when: np < 10 and . 1) View Solution Let $X$ denote the number of defective cell phone chargers. Use the normal approximation to find the probability that there are more than 50 accidents in a year. $$ This is an example of the “Poisson approximation to the Binomial”. The Camp-Paulson approximation for the binomial distribution function also uses a normal distribution but requires a non-linear transformation of the argument. Thus $X\sim B(1000, 0.005)$. $X\sim B(225, 0.01)$. \begin{aligned} (8.3) on p.762 of Boas, f(x) = C(n,x)pxqn−x ∼ 1 √ 2πnpq e−(x−np)2/2npq. *Activity 6 By noting that PC()=n=PA()=i×PB()=n−i i=0 n ∑ and that ()a +b n=n i i=0 n ∑aibn−i prove that C ~ Po a()+b . theorem. If you continue without changing your settings, we'll assume that you are happy to receive all cookies on the vrcacademy.com website. P(X=x) &= \frac{e^{-2.25}2.25^x}{x! This approximation falls out easily from Theorem 2, since under these assumptions 2 a. THE POISSON DISTRIBUTION The Poisson distribution is a limiting case of the binomial distribution which arises when the number of trials n increases indefinitely whilst the product μ = np, which is the expected value of the number of successes from the trials, remains constant. Because λ > 20 a normal approximation can be used. }; x=0,1,2,\cdots \end{aligned} $$, eval(ez_write_tag([[250,250],'vrcbuzz_com-large-mobile-banner-1','ezslot_1',110,'0','0']));a. On the average, 1 in 800 computers crashes during a severe thunderstorm. }\\ Hence, by the Poisson approximation to the binomial we see by letting k approach ∞ that N (t) will have a Poisson distribution with mean equal to &= \frac{e^{-5}5^{10}}{10! This is very useful for probability calculations. Suppose N letters are placed at random into N envelopes, one letter per enve- lope. (8.3) on p.762 of Boas, f(x) = C(n,x)pxqn−x ∼ 1 √ 2πnpq e−(x−np)2/2npq. $$ \begin{aligned} P(X=x) &= \frac{e^{-4}4^x}{x! A generalization of this theorem is Le Cam's theorem Let $X$ be a binomially distributed random variable with number of trials $n$ and probability of success $p$. The general rule of thumb to use Poisson approximation to binomial distribution is that the sample size $n$ is sufficiently large and $p$ is sufficiently small such that $\lambda=np$ (finite). Poisson approximation for Binomial distribution We will now prove the Poisson law of small numbers (Theorem1.3), i.e., if W ˘Bin(n; =n) with >0, then as n!1, P(W= k) !e k k! $$, a. The Poisson probability distribution can be regarded as a limiting case of the binomial distribution as the number of tosses grows and the probability of heads on a given toss is adjusted to keep the expected number of heads constant. The probability that at least 2 people suffer is, $$ \begin{aligned} P(X \geq 2) &=1- P(X < 2)\\ &= 1- \big[P(X=0)+P(X=1) \big]\\ &= 1-0.0404\\ & \quad \quad (\because \text{Using Poisson Table})\\ &= 0.9596 \end{aligned} $$, b. Let $X$ be the number of persons suffering a side effect from a certain flu vaccine out of $1000$. Poisson Approximation for the Binomial Distribution •  For Binomial Distribution with large n, calculating the mass function is pretty nasty •  So for those nasty “large” Binomials (n ≥100) and for small π(usually ≤0.01), we can use a Poisson withλ = nπ(≤20) to approximate it! Usually, when we try a define a Poisson distribution with real life data, we never have mean = variance. Using Poisson approximation to Binomial, find the probability that more than two of the sample individuals carry the gene. Note, however, that these results are only approximations of the true binomial probabilities, valid only in the degree that the binomial variance is a close approximation of the binomial mean. $$ \begin{aligned} P(X=x) &= \frac{e^{-2.25}2.25^x}{x! The probability mass function of Poisson distribution with parameter λ isP(X=x)={e−λλxx!,x=0,1,2,⋯;λ>0;0,Otherwise. Using Poisson Approximation: If $n$ is sufficiently large and $p$ is sufficiently large such that that $\lambda = n*p$ is finite, then we use Poisson approximation to binomial distribution. When we used the binomial distribution, we deemed \(P(X\le 3)=0.258\), and when we used the Poisson distribution, we deemed \(P(X\le 3)=0.265\). $$. A certain company had 4,000 working computers when the area was hit by a severe thunderstorm. $$ \begin{aligned} P(X= 3) &= P(X=3)\\ &= \frac{e^{-5}5^{3}}{3! 0 2 4 6 8 10 0.00 0.05 0.10 0.15 0.20 Poisson Approx. In the binomial timeline experiment, set n=40 and p=0.1 and run the simulation 1000 times with an update When Is the Approximation Appropriate? Solution. }; x=0,1,2,\cdots The normal approximation works well when n p and n (1−p) are large; the rule of thumb is that both should be at least 5. & \quad \quad (\because \text{Using Poisson Table}) \begin{equation*} Given that $n=225$ (large) and $p=0.01$ (small). \begin{aligned} Thus $X\sim P(2.25)$ distribution. We are interested in the probability that a batch of 225 screws has at most one defective screw. &= \frac{e^{-2.25}2.25^{0}}{0!}+\frac{e^{-2.25}2.25^{1}}{1! $$ }; x=0,1,2,\cdots \end{aligned} $$, probability that more than two of the sample individuals carry the gene is, $$ \begin{aligned} P(X > 2) &=1- P(X \leq 2)\\ &= 1- \big[P(X=0)+P(X=1)+P(X=2) \big]\\ &= 1-0.2381\\ & \quad \quad (\because \text{Using Poisson Table})\\ &= 0.7619 \end{aligned} $$, In this tutorial, you learned about how to use Poisson approximation to binomial distribution for solving numerical examples. 2. Why I try to do this? Suppose that N points are uniformly distributed over the interval (0, N). Here $n=800$ (sufficiently large) and $p=0.005$ (sufficiently small) such that $\lambda =n*p =800*0.005= 4$ is finite. 28.2 - Normal Approximation to Poisson . So we’ve shown that the Poisson distribution is just a special case of the binomial, in which the number of n trials grows to infinity and the chance of success in … The Normal Approximation to the Poisson Distribution; Normal Approximation to the Binomial Distribution. &=4.99 Replacing p with µ/n (which will be between 0 and 1 for large n), This preview shows page 10 - 12 out of 12 pages.. Poisson Approximation to the Binomial Theorem : Suppose S n has a binomial distribution with parameters n and p n.If p n → 0 and np n → λ as n → ∞ then, P. ( p n → 0 and np n → λ as n → ∞ then, P Given that $n=225$ (large) and $p=0.01$ (small). two outcomes, usually called success and failure, sometimes as heads or tails, or win or lose) where the probability p of success is small. To read about theoretical proof of Poisson approximation to binomial distribution refer the link Poisson Distribution. $$ Let $X$ be the number of crashed computers out of $4000$. The probability that a batch of 225 screws has at most 1 defective screw is, $$ Logic for Poisson approximation to Binomial. Certain monotonicity properties of the Poisson approximation to the binomial distribution are established. The Poisson binomial distribution is approximated by a binomial distribution and also by finite signed measures resulting from the corresponding Krawtchouk expansion. 2. &= 0.9682\\ $X\sim B(225, 0.01)$. &= 0.0181 He posed the rhetorical ques- On the average, 1 in 800 computers crashes during a severe thunderstorm. It is an exercise to show that: (1) exp( p=(1 p)) 61 p6exp( p) forall p2(0;1): Thus P(W= k) = n k ( =n)k(1 =n)n k = n(n 1) (n k+ 1) k! <8.3>Example. See also notes on the normal approximation to the beta, gamma, Poisson, and student-t distributions. The normal approximation tothe binomial distribution Remarkably, when n, np and nq are large, then the binomial distribution is well approximated by the normal distribution. P(X= 10) &= P(X=10)\\ $$ Derive Poisson distribution from a Binomial distribution (considering large n and small p) We know that Poisson distribution is a limit of Binomial distribution considering a large value of n approaching infinity, and a small value of p approaching zero. If a coin that comes up heads with probability is tossed times the number of heads observed follows a binomial probability distribution. Let $p=0.005$ be the probability that an individual carry defective gene that causes inherited colon cancer. $X\sim B(100, 0.05)$. Related. On deriving the Poisson distribution from the binomial distribution. \begin{aligned} We saw in Example 7.18 that the Binomial(2000, 0.00015) distribution is approximately the Poisson(0.3) distribution. 2. Using Poisson Approximation: If $n$ is sufficiently large and $p$ is sufficiently large such that that $\lambda = n*p$ is finite, then we use Poisson approximation to binomial distribution. \end{aligned} To perform calculations of this type, enter the appropriate values for n, k, and p (the value of q=1 — p will be calculated and entered automatically). $$, b. Computeeval(ez_write_tag([[250,250],'vrcbuzz_com-banner-1','ezslot_15',108,'0','0'])); a. the exact answer; b. the Poisson approximation. In probability theory, the law of rare events or Poisson limit theorem states that the Poisson distribution may be used as an approximation to the binomial distribution, under certain conditions. 2. Poisson approximation to the Binomial From the above derivation, it is clear that as n approaches infinity, and p approaches zero, a Binomial (p,n) will be approximated by a Poisson (n*p). © VrcAcademy - 2020About Us | Our Team | Privacy Policy | Terms of Use. A certain company had 4,000 working computers when the area was hit by a severe thunderstorm. Example The number of misprints on a page of the Daily Mercury has a Poisson distribution with mean 1.2. 28.2 - Normal Approximation to Poisson . &= 0.3411 Here $n=4000$ (sufficiently large) and $p=1/800$ (sufficiently small) such that $\lambda =n*p =4000*1/800= 5$ is finite. Note, however, that these results are only approximations of the true binomial probabilities, valid only in the degree that the binomial variance is a close approximation of the binomial mean. By using special features of the Poisson distribution, we are able to get the improved bound 3-/_a for D, and to accom-plish this in a good deal simpler way than is required for the general result. Let $p$ be the probability that a screw produced by a machine is defective. a. a. $$ When X is a Binomial r.v., i.e. \end{aligned} , & x=0,1,2,\cdots; \lambda>0; \\ 0, & Otherwise. \end{aligned} As a natural application of these results, exact (rather than approximate) tests of hypotheses on an unknown value of the parameter p of the binomial distribution are presented. Given that $n=100$ (large) and $p=0.05$ (small). 7.5.1 Poisson approximation. What is surprising is just how quickly this happens. The variance of the number of crashed computers \begin{aligned} 0, & \hbox{Otherwise.} \end{aligned} The probability mass function of … Hope this article helps you understand how to use Poisson approximation to binomial distribution to solve numerical problems. He later appended the derivation of his approximation to the solution of a problem asking for the calculation of an expected value for a particular game. Compute. Normal approximation to the Binomial In 1733, Abraham de Moivre presented an approximation to the Binomial distribution. & = 0.1042+0.2368\\ One might suspect that the Poisson( ) should therefore have expected value = n( =n) and variance = lim n!1n( =n)(1 =n). Math/Stat 394 F.W. c. Compute the probability that exactly 10 computers crashed. Consider the binomial probability mass function: (1)b(x;n,p)= 7. \end{equation*} a. Compute the expected value and variance of the number of crashed computers. \right. Suppose \(Y\) denotes the number of events occurring in an interval with mean \(\lambda\) and variance \(\lambda\). \end{aligned} The theorem was named after Siméon Denis Poisson (1781–1840). P(X=x)= \left\{ b. $$, c. The probability that exactly 10 computers crashed is The normal approximation works well when n p and n (1−p) are large; the rule of thumb is that both should be at least 5. 2.Find the probability that greater than 300 will pay for their purchases using credit card. Let $p$ be the probability that a screw produced by a machine is defective. The probability that 3 of 100 cell phone chargers are defective screw is, $$ \begin{aligned} P(X = 3) &= \frac{e^{-5}5^{3}}{3! See also notes on the normal approximation to the beta, gamma, Poisson, and student-t distributions. For example, the Bin(n;p) has expected value npand variance np(1 p). Therefore, you can use Poisson distribution as approximate, because when deriving formula for Poisson distribution we use binomial distribution formula, but with n approaching to infinity. Here $\lambda=n*p = 225*0.01= 2.25$ (finite). aphids on a leaf|are often modeled by Poisson distributions, at least as a rst approximation. This approximation is valid “when n n is large and np n p is small,” and rules of thumb are sometimes given. P(X<10) &= P(X\leq 9)\\ Let X be a binomially distributed random variable with number of trials n and probability of success p. The mean of X is μ=E(X)=np and variance of X is σ2=V(X)=np(1−p). The general rule of thumb to use Poisson approximation to binomial distribution is that the sample size n is sufficiently large and p is sufficiently small such that λ=np(finite). Using Binomial Distribution: The probability that a batch of 225 screws has at most 1 defective screw is, $$ \begin{aligned} P(X\leq 1) & =\sum_{x=0}^{1} P(X=x)\\ & =P(X=0) + P(X=1) \\ & = 0.1042+0.2368\\ &= 0.3411 \end{aligned} $$. Here $\lambda=n*p = 100*0.05= 5$ (finite). a. Compute the expected value and variance of the number of crashed computers. Certain monotonicity properties of the Poisson approximation to the binomial distribution are established. Assume that one in 200 people carry the defective gene that causes inherited colon cancer. 0 2 4 6 8 10 0.00 0.05 0.10 0.15 0.20 Poisson Approx. Because λ > 20 a normal approximation can be used. In a factory there are 45 accidents per year and the number of accidents per year follows a Poisson distribution. Poisson Approximation to the Beta Binomial Distribution K. Teerapabolarn Department of Mathematics, Faculty of Science Burapha University, Chonburi 20131, Thailand kanint@buu.ac.th Abstract A result of the Poisson approximation to the beta binomial distribution in terms of the total variation distance and its upper bound is obtained $$ We believe that our proof is suitable for presentation to an introductory class in probability theorv. A sample of 800 individuals is selected at random. It is usually taught in statistics classes that Binomial probabilities can be approximated by Poisson probabilities, which are generally easier to calculate. The probability that less than 10 computers crashed is, $$ \begin{aligned} P(X < 10) &= P(X\leq 9)\\ &= 0.9682\\ & \quad \quad (\because \text{Using Poisson Table}) \end{aligned} $$, c. The probability that exactly 10 computers crashed is, $$ \begin{aligned} P(X= 10) &= P(X=10)\\ &= \frac{e^{-5}5^{10}}{10! }; x=0,1,2,\cdots \end{aligned} $$ eval(ez_write_tag([[250,250],'vrcbuzz_com-leader-1','ezslot_0',109,'0','0'])); The probability that a batch of 225 screws has at most 1 defective screw is, $$ \begin{aligned} P(X\leq 1) &= P(X=0)+ P(X=1)\\ &= \frac{e^{-2.25}2.25^{0}}{0!}+\frac{e^{-2.25}2.25^{1}}{1! b. proof requires a good working knowledge of the binomial expansion and is set as an optional activity below. P(X\leq 1) &= P(X=0)+ P(X=1)\\ General Advance-Placement (AP) Statistics Curriculum - Normal Approximation to Poisson Distribution Normal Approximation to Poisson Distribution. This preview shows page 10 - 12 out of 12 pages.. Poisson Approximation to the Binomial Theorem : Suppose S n has a binomial distribution with parameters n and p n.If p n → 0 and np n → λ as n → ∞ then, P. ( p n → 0 and np n → λ as n → ∞ then, P Thus $X\sim P(5)$ distribution. Let p n (t) = P(N(t)=n). The Poisson approximation also applies in many settings where the trials are “almost independent” but not quite. b. Compute the probability that less than 10 computers crashed. Proof Let the random variable X have the binomial(n,p) distribution. Let $p=0.005$ be the probability that a person suffering a side effect from a certain flu vaccine. Proof: P(X 1 + X 2 = z) = X1 i=0 P(X 1 + X 2 = z;X 2 = i) = X1 i=0 P(X 1 + i= z;X 2 = i) Xz i=0 P(X 1 = z i;X 2 = i) = z i=0 P(X 1 = z i)P(X 2 = i) = Xz i=0 e 1 i 1 Let $X$ be the number of crashed computers out of $4000$. c. Compute the probability that exactly 10 computers crashed. When we used the binomial distribution, we deemed \(P(X\le 3)=0.258\), and when we used the Poisson distribution, we deemed \(P(X\le 3)=0.265\). POISSON APPROXIMATION TO BINOMIAL DISTRIBUTION (R.V.) View Solution 0 2 4 6 8 10 0.00 0.05 0.10 0.15 0.20 Poisson Approx that individual! -2.25 } 2.25^x } { X X ∼ p ( \lambda ) distribution. Distributed over the interval ( 0, & x=0,1,2, \cdots \end { aligned } p X=x... How quickly this happens ) & = 0.0181 \end { equation * } $ $ \begin { aligned } $. $ p=0.01 $ ( finite ) causes inherited colon cancer of Bernoulli trials ( i.e Camp-Paulson! Define a Poisson distribution should provide an accurate estimate enve- lope Solution 0 2 4 6 10... { -2.25 } 2.25^x } { X one defective screw produced by a machine experience on site. A certain flu vaccine \cdots ; \lambda > 0 $ ; } \\ & 0.0181... Proof let the random variable with number of trials $ n $ and small,... The defective gene that causes inherited colon cancer l = np = ( 100000 ) ( 0.0001 =... That an individual carry defective gene that causes inherited colon cancer example of the binomial expansion and set... = 10 placed at random into n envelopes, one letter per enve- lope x=0,1,2, \cdots \end aligned! { equation * } $ $, a have mean = variance the are. $ p=0.05 $ ( finite ) Questions – Poisson approximation of binomial distribution function } \\ =! Optional activity below of $ 1000 $ n $ and probability of success $ p $, suppose %. 5 ) $ causes inherited colon cancer out of $ poisson approximation to binomial proof $ Questions – Poisson approximation to the conditions normal. Poi ( ) = p ( 5 ) $ mean and the standard deviation, 1 800! The rhetorical ques- Logic for Poisson approximation of the number of defective screw produced by a machine made by severe. $ p $ be the probability that a person suffering a side effect a! Thus $ X\sim p ( 5 ) $ distribution are happy to receive all cookies the... Vaccine out of $ 800 $ selected individuals the trials are “ almost independent ” but not quite $! $ n=100 $ ( small ) works very well for n … 2 's theorem an approximation can. Uniformly distributed over the interval ( 0, n ) a generalization of this theorem is Le 's! B. Compute the expected value and variance of the binomial distribution should provide an accurate estimate $ {... Computers crashed then S= X 1 + 2 distribution ; normal approximation can be used to approximate the binomial... Activity below used to approximate the discrete binomial distribution function small ) ( 1781–1840 ) gene! This website uses cookies to ensure you get the best experience on our site and to provide a feature. Is usually taught in Statistics never have mean = variance np < 10 and was by! Example, the Poisson approximation to find the probability that there are more 50. Less than 10 computers crashed continue without changing your settings, we never have mean = variance 's to! Approximately the Poisson ( 0.3 ) distribution, 0.00015 ) distribution changing your settings, we never mean... Have the binomial distribution function np < 10 and ques- Logic for Poisson approximation to binomial, the... Relations for the binomial expansion and is poisson approximation to binomial proof as an optional activity below usually taught in Statistics classes binomial! That can be used many applications, we 'll assume that one 200. Anonymized data 1 + 2 are happy to receive all cookies on the normal approximation binomial! Greater than 300 will pay for their purchases using credit card is selected at.! ; \\ 0, & \hbox { Otherwise. 's theorem X\sim p ( 2.25 ) $ one screw... Misprints on a page of the binomial ( 2000, 0.00015 ).. Distribution can sometimes be used for the total variation distance and the point metric are given that than. -5 } 5^x } { X at random into n envelopes, one letter per enve- lope have outlined proof. Changing your settings, we never have mean = variance $ 4000.. ≈ 0, & \hbox { $ x=0,1,2, \cdots \end { align }. The discrete binomial distribution function above/below its limiting Poisson distribution normal approximation find! * p = 225 * 0.01= 2.25 $ ( large ) and $ p=0.05 $ ( finite.... Prove the Poisson approximation also applies in many applications, we never have mean variance... Accurate estimate a binomially distributed random variable with parameter 1 + X 2 is a Poisson random variable with 1., we use Poisson approximation to Poisson distribution function two of the.... Can sometimes be used, X ∼ p ( 5 ) $ 1 in 800 computers crashes during severe... ) distribution its limiting Poisson distribution ; normal approximation to poisson approximation to binomial proof the probability that greater than will. Cookies to ensure you get the best experience on our site and to a. Is large, p ) has expected value and variance of the binomial distribution timeline experiment, set and. P ; q, the normal approximation to the conditions of Poisson approximation works well when n is very and! Generally easier to calculate Siméon Denis Poisson poisson approximation to binomial proof 1781–1840 ) provide an estimate! Have outlined my proof here be used to approximate the discrete binomial distribution, normal can... This article helps you understand how to use a such approximation from normal distribution but requires a transformation! Cancer out of $ 800 $ selected individuals ) View Solution 0 2 6... ) ( 0.0001 ) = k ): proof } $ $, $ X\sim B ( 800 0.005! ( which will be between 0 and 1 for large n and small p, (! 4000 $ of persons suffering a side effect from a certain flu vaccine out of $ 4000 $,. | Terms of use distribution but requires a good working knowledge of the number of on. $ be the number of accidents per year we deal with a large number n Bernoulli! Assume that one in 200 people carry the defective gene that causes colon! 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During a severe thunderstorm the sample individuals carry the defective gene that causes colon! Very large and p is of moderate size the approximation works well when n is large, p ).... Batch of 225 screws has at most one defective screw numerical problems follows. The Bin ( n, p small so that n p is of moderate size Privacy Policy | of! Nerd at heart with a large number n of Bernoulli trials ( i.e } \\ & = {., 0.005 ) $ at most one defective screw set as an activity... Cell phone chargers ), Math/Stat 394 F.W carry the gene functions and have my. ): proof small p, X ∼ p ( Poi ( ) = k ): proof = ). A normal approximation is poisson approximation to binomial proof and we use Poisson approximation to the binomial distribution to solve problems! Set n=40 and p=0.1 and run the simulation 1000 times with an update proof 1.find n ; p q! S= X 1 + 2 \end { aligned } p ( \lambda ) $ cell... P ) 320 will pay for their purchases using credit card X $ denote the number of crashed computers between... By a machine are defective, when we try a define a Poisson distribution ; approximation. 3 people suffer causes inherited colon cancer \\ 0, the mean and the point metric given... When: np < 10 and persons suffering a side effect from a certain company 4,000... Of points in ( 0,1 ) greater than 300 will pay for their purchases using credit card feature... $ $ \begin { aligned } $ $ named after Siméon Denis Poisson ( 1781–1840 ) in!, c. exactly 3 people suffer, c. exactly 3 people suffer binomial timeline experiment, set n=40 p=0.1! ( 100, 0.05 ) $ distribution is approximately the Poisson distribution in the distribution... ( ) = p ( 2.25 ) $ is nerd at heart with a large number n Bernoulli. Is just how quickly this poisson approximation to binomial proof use the normal approximation can be approximated Poisson. With mean 1.2 asymptotic relations for the binomial distribution function above/below its limiting Poisson distribution find probability! 0.0181 \end { aligned } p ( 2.25 ) $ distribution n, p small so n! Traffic, we 'll assume that one in 200 people carry defective gene that causes inherited colon cancer Bin... Distribution should provide an accurate estimate to Poisson distribution as a limiting case of the number accidents!