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Question: under an insurance policy a maximum of five claims may...

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Under an insurance policy, a maximum of five claims may be filed per year by a policyholder. Let Pn be the probability that a policyholder files n claims during a given year, where n 0,1,2,3,4,5. An actuary makes the following observations: Pn 2 Pat for n 0, 1,2, 3,4 ii) The difference between pn and pn+1 is the same for n 0,1,2, 3,4 iii) Exactly 40% of policyholders file fewer than two claims during a given year Calculate the probability that a random policyholder will file more than three claims during a given year. OA) 0.14 OB) 0.16 c) 0.27 D) 0.29 0 E) 0.33

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