What is the best intuition behind the unique parameter $\lambda$ in the Poisson distribution?
2026-03-26 14:19:07.1774534747
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Poisson distribution, the meaning of the parameter lambda
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Since the Poisson distribution is defined as
$$\pi_{\lambda}(k)~=~\frac{\lambda^k}{k!}e^{-\lambda}$$
It is not hard to show that $E[X]=\lambda$ and $D^2[X]=\lambda$. Therefore you can directly interpret $\lambda$ as the expectation or as well as the variance of the poisson distributed variable.
Poisson RV is commonly used for modelling number of occurrences of an event within a particular time interval. And, since $E[X]=\lambda$, its unique parameter is referred as mean number of event occurrences within our particular time interval.