Solution

ID: past-exam-of-the-mathematics-course-of-the-university-of-cambridge/2025/ii/paper-3/13a/c/solution

For a Poisson random variable of mean ,
Substitution into part (b) gives the closed Riccati equation
Its positive equilibrium is stable on the nonnegative half-line and equals
Thus under the Poisson approximation,

New to topics? Read the docs here!