Question: Let pn, n = 0, 1, 2, . . . , be the probability that an automobile policyholder will file for n claims in a

Let pn, 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 pn+1 = (1/4)pn. What is the probability that the holder will file two or more claims during this period?

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