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
Advanced Engineering Mathematics
10th Edition
ISBN:9780470458365
Author:Erwin Kreyszig
Publisher:Erwin Kreyszig
Chapter2: Second-order Linear Odes
Section: Chapter Questions
Problem 1RQ
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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.)
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