Independent of preceding years


The annual premium of your car insurance starts at $1000 and is condensed by 10% after each and every year where no claim has been filed. The probability that a claim is filed in the given year is 0.05, independent of preceding years. Determine the PMF of the total premium paid up to and comprising the year when the first claim is filed?

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Basic Statistics: Independent of preceding years
Reference No:- TGS0848030

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