Hi there, In part (iii) of this question we use a Poisson approximation to the Binomial distribution to approximate the probability that the person is repaid more than £2040. The solution goes from P(S>2040) to P(N>4). I dont understand how we get from one to the other. Can anyone help? Thanks
Think about 200 certificates worth of ₤2040 as sum of 196*₤10+4*₤20, so there are 4 certificates from our binomial distribution.
