An auto insurance company classifies its customers in three categories: poor, satisfactory, and preferred. Each year, 35% of those in the poor category are moved to satisfactory and 20% of those in the satisfactory category are moved to preferred. Also, 20% in the preferred category are moved to the satisfactory category, and 20% 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? SIED

Glencoe Algebra 1, Student Edition, 9780079039897, 0079039898, 2018
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Author:Carter
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Chapter10: Statistics
Section10.6: Summarizing Categorical Data
Problem 10CYU
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An auto insurance company classifies its customers in three categories: poor, satisfactory, and preferred. Each year, 35% of those in the poor category are moved to
satisfactory and 20% of those in the satisfactory category are moved to preferred. Also, 20% in the preferred category are moved to the satisfactory category, and 20%
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.)
Transcribed Image Text:K An auto insurance company classifies its customers in three categories: poor, satisfactory, and preferred. Each year, 35% of those in the poor category are moved to satisfactory and 20% of those in the satisfactory category are moved to preferred. Also, 20% in the preferred category are moved to the satisfactory category, and 20% 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.)
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