(a) Describe two scenarios in the field of Finance which could be modeled as a Binomial Distribution.

(b) Seed crops such as wheat, maize, pumpkin are sensitive to moisture and thus the

amount of rainfall. Rainfall levesl 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.