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A company has ve employees on its health insurance plan. Each year, each employee independently has...

A company has ve employees on its health insurance plan. Each year, each
employee independently has an 80% probability of no hospital admissions.
If an employee requires one or more hospital admissions, the number of ad-
missions is modeled by a geometric distribution with a mean of 1.50. The
numbers of hospital admissions of different employees are mutually indepen-
dent. Each hospital admission costs 20,000.
Calculate the probability that the company's total hospital costs in a year
are less than 50,000. The answer is 0.78279. Could you explain why? Thank you!

Math   Statistics-And-Probability   
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