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Encyclopedia > Compound Poisson process
This article or section should be merged with Poisson process

A compound poisson process with rate λ > 0 and jump size distribution G is a parametrized family of random variables given by

where,


is a Poisson process with rate λ, and


are independent and identically distributed random variables, with distribution function G, which are also independent of


  Results from FactBites:
 
Poisson process - Wikipedia, the free encyclopedia (978 words)
The Poisson process is a continuous-time process: its discrete-time counterpart is the Bernoulli process.
A Poisson process is a pure-birth process, the simplest example of a birth-death process.
Just as a Poisson random variable is characterized by its scalar parameter λ, a homogeneous Poisson process is characterized by its rate parameter λ, which is the expected number of "events" or "arrivals" that occur per unit time.
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