If you have the mean λ of an event happening per unit and you are asked to find the probability of x events happening in a given time, then the poisson distribution should be used.
If the mean λ > 5 it can be approximated using the normal distribution,
where the variance = mean λ.
Example, Customer arrive at a checkout counter in a department store according to a Poisson distribution at an average of seven per hour, During a given hour, what are the probabilities that:
- exactly 3 costumers arriving?
- less than 3 costumers arriving?
- more than 3 costumers arriving?
- 3 or less costumers arriving?
- 3 or more costumers arriving?