Answer:
a) 0.0613 b)0.0803
Step-by-step explanation:
Ms. Bergen estimates that the probability is 0.025 that an applicant will not be able to repay his or her installment loan.
p = 0.025
Let's consider that an applicant is not be able to repay his or her installment loan as a ''success''
p (success) = 0.025
Last month she made 40 loans ⇒ n = 40
For the poisson approximation to the binomial we need to calculate n.p that will be the λ parameter in our poisson approximation

λ=n.p=1
Let's rename λ = j
In our poisson approximation :

f(k,j) is the probability function for our poisson variable where we calculated j,e is the euler number and k is the number of success :

For a) We are looking the probability of 3 success :

For b) We are looking for the probability of at least 3 success
If ''L'' is the number of success




