37. A company prices its hurricane insurance using the following assumptions:
(i) In any calendar year, there can be at most one hurricane.
(ii) In any calendar year, the probability of a hurricane is 0.05.
(iii) The numbers of hurricanes in different calendar years are mutually independent.
Using the company’s assumptions, calculate the probability that there are fewer than 3 hurricanes in a 20-year period.
(A) 0.06
(B) 0.19
(C) 0.38
(D) 0.62
(E) 0.92
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