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In modeling the number of claims filed by an individual under an automobile policy during a three-year period, an actuary makes the simplifying assumption that

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In modeling the number of claims filed by an individual under an automobile policy during a three-year period, an actuary makes the simplifying assumption that for all integers n0,p(n+1)=0.2p(n) where p(n) represents the probability that the policyholder files n claims during the period. Under this assumption, calculate the probability that a policyholder files more than one claim during the period. (A) 0.04 (B) 0.16 (C) 0.20 (D) 0.80 (E) 0.96

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