Question: QUESTION 1 (15 Marks) (a) Describe A Scenario In The Field Of Finance Which Could Be Modeled As A Binomial Distribution (Word Count Around 150 Words) (b) Seed Crops Such As Wheat, Maize, Pumpkin Are Sensitive To Moisture And Thus The Amount Of Rainfall. Rainfall Leves Can Be Qualified As : Light, Moderate, Heavy And Violent. A Seed Crop Farmer Recorded …

QUESTION 1 (15 marks) (a) Describe a scenario in the field of Finance which could be modeled as a Binomial Distribution (Word count around 150 words) (b) Seed crops such as wheat, maize, pumpkin are sensitive to moisture and thus the amount of rainfall. Rainfall leves can be qualified as : Light, Moderate, Heavy and Violent. A seed crop farmer recorded his production in kg during the past seasons in the four different scenarios of rainfall. Furthermore, The meteorological services have just released the forecast for rainfall for the coming season in terms of number of expected days of light ,moderate, heavy and violent rain. Advise the producer on how he can use the above information to determine his expected harvest in kg of seed crops. Illustrate by creating a numerical example to show the steps and workings. (Word count around 150 words excluding calculations)