Exercise 2: This exercise studies the diversification of withdrawal needs a) Consider two households, and each of them deposits 500 AUD with the financial insti tution. The probability for a household to withdraw its deposit over the next year is 25% The household withdrawal needs are independent. Calculate the probability for the financial institution to have deposits of 0 AUD, 500 AUD, or 1000 AUD at the end of the year b) Consider 4 households, and each of them deposits 250 AUD with the financial institution The probability for a household to withdraw the deposit over the next year is 25%. Calculate the probability for the financial institution to have deposits of 0 AUD, 250 AUD, 500 AUD, 750 AUD or 1000 AUD at the end of the year c) Compare the distribution of deposits in part a) and b). What do you notice