Automobile policies are separated into two groups: low-risk and high-risk. Actuary Rahul examines low-risk policies, connuing unl a policy with a claim is found and then stopping. Actuary Toby follows the same procedure with high-risk policies. Each low-risk policy has a 10% probability of having a claim. Each high-risk policy has a 20% probability of having a claim. The claim statuses of polices are mutually independent. Calculate the probability that Actuary Rahul examines fewer policies than Actuary Toby.

The probability that Actuary Rahul examines fewer policies that Actuary Toby = 0.2857

Step-by-step explanation:

It is said that Actuary Rahul examines a low risk policy

Probability of a low risk policy having a claim = 10% = 0.1

Actuary Toby examines high risk policy

Probability of a high risk policy having a claim = 20% = 0.2

Let the number of policies examined by actuary Rahul before he finds a claim and stop be n

Probability that actuary Rahul examines exactly n policies =  

Probability that Toby examines more than n policies =

Since the claim statuses of policies are mutually independent, the probability that both events happen simultaneously =

probability that both events happen simultaneously =

The probability that Actuary Rahul examines fewer policies that Actuary Toby = =

The probability that Actuary Rahul examines fewer policies that Actuary Toby = 0.2857

see explanation

step-by-step explanation:

since the sequence is geometric there is a common ratio r between consecutive terms, that is

r = 4 ÷ - 2 = - 2

r = - 8 ÷ 4 = - 2

r = 16 ÷ 8 = - 2

the next term - 13 must be incorrect as it should be - 32 for the sequence to be geometric.

the first 4 terms are therefore geometric with common ratio r = - 2