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Let pn, n = 0, 1, 2, . . . , be the probability that an
Chapter 1, Problem 16E(choose chapter or problem)
Let \(p_{n}\), n = 0, 1, 2, . . . , be the probability that an automobile policyholder will file for n claims in a five-year period. The actuary involved makes the assumption that \(p_{n+1}=(1 / 4) p_{n}\). What is the probability that the holder will file two or more claims during this period?
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QUESTION:
Let \(p_{n}\), n = 0, 1, 2, . . . , be the probability that an automobile policyholder will file for n claims in a five-year period. The actuary involved makes the assumption that \(p_{n+1}=(1 / 4) p_{n}\). What is the probability that the holder will file two or more claims during this period?
ANSWER:Step 1 of 5
Let \(p_{n}\), n = 0, 1, 2, . . . , be the probability that an automobile policyholder will file for n claim in a five-year period.