Modeling Counts vs. Continuous Measurements
Scenario
You are modeling event counts (e.g., number of clicks) versus continuous measurements (e.g., response time). You need to choose an appropriate distribution and understand when one can approximate the other.
Question
-
Explain the main differences between the Normal and Poisson distributions (support, parameters, shape, typical use cases).
-
Under what conditions can a Poisson distribution be approximated by a Normal distribution? State rules of thumb and any corrections.
-
Derive the mean and variance for each distribution.
Hints: support, parameters, shape, CLT conditions, λ → ∞ approximation.