Independent solution
How to solve this Complement Rule question
Setup
Setup
For each of the seven days, the no-claim probability is r, and the daily claim indicators are mutually independent.
Model
Model
The complement of at least one claim is a period with no claim on every day.
Compute
Compute
Independence allows the seven daily no-claim probabilities to be multiplied.
Answer
Answer
The required probability is the complement of seven claim-free days.