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Why the square root stabilizes Poisson counts

You estimate a Poisson rate λ\lambda by the sample mean Xˉ\bar X of nn counts, so Var(Xˉ)=λ/n\operatorname{Var}(\bar X) = \lambda / n (for a Poisson, the variance equals the mean). The problem: this variance depends on λ\lambda, so high-rate and low-rate cells have different noise.

Use the delta method to show that g(Xˉ)=Xˉg(\bar X) = \sqrt{\bar X} has a variance that does not depend on λ\lambda.

Show a hint

Apply the delta method with g(λ)=λg(\lambda) = \sqrt\lambda and watch the λ\lambda's cancel.

Your answer

This one is open-ended. Work it through, then check your reasoning against the full solution.

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