Compound Poisson distribution

The Compound Poisson distribution is a statistical distribution that arises in the context of counting events that occur randomly over time or space, where each event results in a random, typically discrete, amount of "impact" or "size." It combines two probabilistic processes: 1. **Poisson Distribution**: This component models the number of events that occur within a fixed interval (time or space) under the assumption that these events happen independently and at a constant average rate.