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
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
18th Edition
ISBN:9780079039897
Author:Carter
Publisher:Carter
Chapter10: Statistics
Section10.6: Summarizing Categorical Data
Problem 10CYU
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