Question: Suppose a random variable for claim frequency is Poisson and 20 claims are expected in one month. Claims are categorized as small, medium or large.

Suppose a random variable for claim frequency is Poisson and 20 claims are expected in one month. Claims are categorized as small, medium or large. The probability of a small claim is 0.7. The probability of a medium claim is 0.25. The probability of a large claim is 0.05. Determine the probability that there are less than 2 large claims in a month.

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