Part 1
Total paid
=cost of the bond+commission
Total paid
32×96.7+32×10=3,414.4
Part 2
Annual interest
32×96.7
=3,094.4
3,094.4×0.08625
=266.892...Annual interest
Part 3
The effective interest rate
((1+0.08625÷12)^(12)−1)×100
=8.974%
This requires the Poisson distribution, where
area = 5-acres
and mean number of field mice = 12 (in 5-acres of field)
therefore
lambda=12 (mean, given)
and the probability of k mice in the 5-acre field is given by the Poisson distribution as
P(X=k)=lambda^k * e^(-lambda) / k! ..............(1)
To find the probability of having LESS than 7 field mice, we add the probabilities of 0 to 6, which is
P(X<7)=P(X=0)+P(X=1)+...+P(X=6)
evaluating with equation (1) for X=0 to 6, we get:
0 0.0000061 0.0000742 0.0004423 0.0017704 0.0053095 0.0127416 0.025481Total = 0.045822
Answer: The probability that fewer than 7 field mice are found in the 5-acre field is 0.0458.
The answer for this question is B. Let me know
