An auto insurance company classifies its customers in three categories: poor, satisfactory, and preferred. Each year, 25% of those in the poor category are moved to satisfactory and 10% of those in the satisfactory category are moved to preferred. Also, 10% in the preferred category are moved to the satisfactory category, and 10% of those in the satisfactory category are moved to the poor category. Customers are never moved from poor to preferred, or conversely, in a single year. Assuming these percentages remain valid over a long period of time, how many customers can the company expect to have in each category in the long run? Poor =% (Round to the nearest tenth if necessary.)
An auto insurance company classifies its customers in three categories: poor, satisfactory, and preferred. Each year, 25% of those in the poor category are moved to satisfactory and 10% of those in the satisfactory category are moved to preferred. Also, 10% in the preferred category are moved to the satisfactory category, and 10% of those in the satisfactory category are moved to the poor category. Customers are never moved from poor to preferred, or conversely, in a single year. Assuming these percentages remain valid over a long period of time, how many customers can the company expect to have in each category in the long run? Poor =% (Round to the nearest tenth if necessary.)
Calculus: Early Transcendentals
8th Edition
ISBN:9781285741550
Author:James Stewart
Publisher:James Stewart
Chapter1: Functions And Models
Section: Chapter Questions
Problem 1RCC: (a) What is a function? What are its domain and range? (b) What is the graph of a function? (c) How...
Related questions
Question
Subject: calculus
![An auto insurance company classifies its customers in three categories: poor, satisfactory, and preferred. Each year,
25% of those in the poor category are moved to satisfactory and 10% of those in the satisfactory category are moved to
preferred. Also, 10% in the preferred category are moved to the satisfactory category, and 10% of those in the
satisfactory category are moved to the poor category. Customers are never moved from poor to preferred,
or conversely, in a single year. Assuming these percentages remain valid over a long period of time, how many
customers can the company expect to have in each category in the long run?
Poor =% (Round to the nearest tenth if necessary.)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F8fc66754-dc05-453a-a4c8-c79196bcb5d1%2F664897cf-40bd-402b-ba59-8ec4cd5d81dc%2Fele9waf_processed.jpeg&w=3840&q=75)
Transcribed Image Text:An auto insurance company classifies its customers in three categories: poor, satisfactory, and preferred. Each year,
25% of those in the poor category are moved to satisfactory and 10% of those in the satisfactory category are moved to
preferred. Also, 10% in the preferred category are moved to the satisfactory category, and 10% of those in the
satisfactory category are moved to the poor category. Customers are never moved from poor to preferred,
or conversely, in a single year. Assuming these percentages remain valid over a long period of time, how many
customers can the company expect to have in each category in the long run?
Poor =% (Round to the nearest tenth if necessary.)
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 5 steps with 4 images
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Recommended textbooks for you
![Calculus: Early Transcendentals](https://www.bartleby.com/isbn_cover_images/9781285741550/9781285741550_smallCoverImage.gif)
Calculus: Early Transcendentals
Calculus
ISBN:
9781285741550
Author:
James Stewart
Publisher:
Cengage Learning
![Thomas' Calculus (14th Edition)](https://www.bartleby.com/isbn_cover_images/9780134438986/9780134438986_smallCoverImage.gif)
Thomas' Calculus (14th Edition)
Calculus
ISBN:
9780134438986
Author:
Joel R. Hass, Christopher E. Heil, Maurice D. Weir
Publisher:
PEARSON
![Calculus: Early Transcendentals (3rd Edition)](https://www.bartleby.com/isbn_cover_images/9780134763644/9780134763644_smallCoverImage.gif)
Calculus: Early Transcendentals (3rd Edition)
Calculus
ISBN:
9780134763644
Author:
William L. Briggs, Lyle Cochran, Bernard Gillett, Eric Schulz
Publisher:
PEARSON
![Calculus: Early Transcendentals](https://www.bartleby.com/isbn_cover_images/9781285741550/9781285741550_smallCoverImage.gif)
Calculus: Early Transcendentals
Calculus
ISBN:
9781285741550
Author:
James Stewart
Publisher:
Cengage Learning
![Thomas' Calculus (14th Edition)](https://www.bartleby.com/isbn_cover_images/9780134438986/9780134438986_smallCoverImage.gif)
Thomas' Calculus (14th Edition)
Calculus
ISBN:
9780134438986
Author:
Joel R. Hass, Christopher E. Heil, Maurice D. Weir
Publisher:
PEARSON
![Calculus: Early Transcendentals (3rd Edition)](https://www.bartleby.com/isbn_cover_images/9780134763644/9780134763644_smallCoverImage.gif)
Calculus: Early Transcendentals (3rd Edition)
Calculus
ISBN:
9780134763644
Author:
William L. Briggs, Lyle Cochran, Bernard Gillett, Eric Schulz
Publisher:
PEARSON
![Calculus: Early Transcendentals](https://www.bartleby.com/isbn_cover_images/9781319050740/9781319050740_smallCoverImage.gif)
Calculus: Early Transcendentals
Calculus
ISBN:
9781319050740
Author:
Jon Rogawski, Colin Adams, Robert Franzosa
Publisher:
W. H. Freeman
![Precalculus](https://www.bartleby.com/isbn_cover_images/9780135189405/9780135189405_smallCoverImage.gif)
![Calculus: Early Transcendental Functions](https://www.bartleby.com/isbn_cover_images/9781337552516/9781337552516_smallCoverImage.gif)
Calculus: Early Transcendental Functions
Calculus
ISBN:
9781337552516
Author:
Ron Larson, Bruce H. Edwards
Publisher:
Cengage Learning