Posted in Operations and Supply Chain Terms, Total Reads: 1654
Definition: Exponential distribution
It is used in probability distribution and statistics theory to describe the occurrence and time interval between processes which are happening independent of each other like the Poisson process. It is different from the geometric progression as it not for the discrete events but for the continuous events.
It helps in understanding the probability of occurrence of events like radioactive decay, time before failure etc. and helps in mapping their patterns. This pattern serves very useful in designing of the process and systems.