What is the pmf of the total premium paid up


The annual premium of a special kind of insurance starts at $1000 and is reduced by 10% after each year where no claim has been filed. The probability that a claim is filed in a given year is 0.05, independently of preceding years. What is the PMF of the total premium paid up to and including the year when the first claim is filed?

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Basic Statistics: What is the pmf of the total premium paid up
Reference No:- TGS0122013

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