A midwestern university offers its employees three choices for health care: a clinic-based health maintenance organization (HMO), a prefered provider organization (PPO), and a traditional fee-for-service program (FFS) Each year, the university designates an open enrolment period during which employees may change from one health plan to another. Prior to the last open enroliment period, 25% of employees were enrolled in the HMO, 20% in the PPO, and the remainder in the FFS. During the open enroliment period, 15% of employees in the HMO switched to the PPO and 5% switched to the FFS, 25% of the employees in the PPO switched to the HMO and 10% to the FFS, and 30% of the employees in the FFS switched to the HMO and 35% switched to the PPO. Complete parts (A) through (C) below. (A) Write the transition matrix. HMO PPO FFS .05 75 25 HMO 20 PPO 65 10 FFS 30 35 35 (Type integers or decimals.)

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A midwestern university offers its employees three choices for health care: a clinic-based health maintenance organization (HMO), a preferred provider organization
(PPO), and a traditional fee-for-service program (FFS). Each year, the university designates an open enrolment period during which employees may change from one
health plan to another. Prior to the last open enrollment period, 25% of employees were enrolled in the HMO, 20% in the PPO, and the remainder in the FFS. During
the open enroliment period, 15% of employees in the HMO switched to the PPO and 5% switched to the FFS, 25% of the employees in the PPO switched fo the HMO
and 10% to the FFS, and 30% of the employees in the FFS switched to the HMO and 35% switched to the PPO. Complete parts (A) through (C) below.
(A) Write the transition matrix.
HMO
PPO
FFS
HMO
75
20
05
PPO
25
65
.10
FFS
30
35
35
(Type integers or decimals.)
Transcribed Image Text:A midwestern university offers its employees three choices for health care: a clinic-based health maintenance organization (HMO), a preferred provider organization (PPO), and a traditional fee-for-service program (FFS). Each year, the university designates an open enrolment period during which employees may change from one health plan to another. Prior to the last open enrollment period, 25% of employees were enrolled in the HMO, 20% in the PPO, and the remainder in the FFS. During the open enroliment period, 15% of employees in the HMO switched to the PPO and 5% switched to the FFS, 25% of the employees in the PPO switched fo the HMO and 10% to the FFS, and 30% of the employees in the FFS switched to the HMO and 35% switched to the PPO. Complete parts (A) through (C) below. (A) Write the transition matrix. HMO PPO FFS HMO 75 20 05 PPO 25 65 .10 FFS 30 35 35 (Type integers or decimals.)
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