Solution

ID: past-exam-of-the-probability-statistics-and-options-i-course-of-the-university-of-oxford/2011/m/1/d/iii/solution

The full-day count has Poisson distribution with mean and variance . Its normal approximation is , with standard deviation . With the usual continuity correction,
Without the half-unit correction the central-limit approximation gives .

New to topics? Read the docs here!