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THE EFFECTIVE UNIT OF THE POISSON DISTRIBUTION AND DEMAND FORECASTING
Author(s) -
RAINE JESSE E.
Publication year - 1971
Publication title -
decision sciences
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.238
H-Index - 108
eISSN - 1540-5915
pISSN - 0011-7315
DOI - 10.1111/j.1540-5915.1971.tb00897.x
Subject(s) - poisson distribution , unit (ring theory) , distribution (mathematics) , computer science , order (exchange) , econometrics , mathematical optimization , operations research , mathematics , statistics , economics , finance , mathematical analysis , mathematics education
This short paper deals with some of the difficulties which have been found in applying the effective unit concept of estimating the Poisson distribution in order to forecast demand in a major industry. It points to two special cases in which the common formulation produces misleading results, discusses the frequency with which these two special cases could be expected to occur based on this one major industry, and proposes some pragmatic solutions to the problems resulting.