of three pension plans, A, B, or C. Once an employee decides to join one of these plans, the employee cannot drop the plan or switch to another plan. Past records indicate that each year 4% of the employees elect to join plan A, 14% elect to join plan B, 7% elect to join plan C, and the remainder do not join any plan. (A) In the long run, what percentage of the employees will elect to join plan A? Plan B? Plan C? (B) On the average, how many years will it take an employee to decide to join a plan?

of three pension plans, A, B, or C. Once an employee decides to join one of these plans, the employee cannot drop the plan or switch to another plan. Past records indicate that each year 4% of the employees elect to join plan A, 14% elect to join plan B, 7% elect to join plan C, and the remainder do not join any plan. (A) In the long run, what percentage of the employees will elect to join plan A? Plan B? Plan C? (B) On the average, how many years will it take an employee to decide to join a plan?

A First Course in Probability (10th Edition)

10th Edition

ISBN:9780134753119

Author:Sheldon Ross

Publisher:Sheldon Ross

Chapter1: Combinatorial Analysis

Section: Chapter Questions

Problem 1.1P: a. How many different 7-place license plates are possible if the first 2 places are for letters and...

See similar textbooks

Related questions

Q: At a single high-end restaurant in England over a 3-week period, there were 141 tables of diners.…

A: Note: "Since you have posted a question with multiple sub-parts, we will solve the first three…

Q: 3. Three energy drink distributers, A, B, and C, currently 20%, 30%, and 50% of the market,…

Q: The Australian Security Exchange (ASX) has more than 2000 listed companies as of 2020. The following…

A: Mean annual returns of the given top ten companies are calculated as So the mean return is 12.09%.

Q: 65. A large operator of timeshare complexes requires any- one interested in making a purchase to…

A: Given Information: 20% of all potential purchasers select a day visit. 50% choose a one-night visit.…

Q: Calculate the mean annual return of the above ten companies. b) List out the companies that are…

A: Given data Company Average Annual Return (%) Archer Daniels Midland 10.5 American…

Q: 3. A zoo has categorized its visitors into three categories: member, school, and general. The member…

A: The data is given as follows.Visitor categoryYear1Year 2Year 3Year…

Q: 2. An electronics company makes customized laptop computers for its customers by assembling various…

A: The number of display screens is 150.

Q: Boran Stockbrokers, Inc., selects four stocks for the purpose of developing its own index of stock…

Q: The American Taxpayer Relief Act of 2012 was passed by the U.S. Congress on January 1, 2013. This…

A: Step 1:Given data : Sample size n=1025Sample proportion p^=0.18 Step 2:for 99% confidence, α=0.01…

Q: 4. A car maker finds that at a sticker price of $25,000 it can sell 3,600 cars a week in a…

Q: Suppose that a country has the following female age structure in the year 2005: Half the women die…

A: Given the age structure of females in 2005 as shown below At age 20 each women has one daughter.…

Q: аppea ally distressed consumers. It allows immediate access to merchandise, and by making all…

A: This question is based on categorical data analysis. The chi square test of homogeneity of prop have…

Q: 问题12 Private colleges and universities rely on money contributed by individuals and corporations for…

A: Sample mean x̄=180.975, S=143.042=sample standard deviations, level of significance ɑ=0.05.

Q: 1. An insurance company classifies drivers as low-risk, medium-risk, and high-risk. Sixty percent of…

A: Given Information: An insurance company classifies drivers as low-risk, medium-risk and high-risk.…

Q: Assume that an economy can have four states: Severe recession, Mild recession, Normal growth, Boom.…

Q: A company knows from past experience that 50% of its employees have chosen to participate in a…

Q: An investment portfolio consists of four stocks. The purchase price, current price, and number of…

A: The answer is attached below,

Q: 2. A stock market analyst examined the performance of the shares of a large number of corporations.…

A: Empirical Probability : A probability space in which each simple event has an equal probability is…

Q: 5. South Bend weather, as follows: (1) If the last two days have been sunny, then 95% of the time,…

A: Given, PXt=Sunny|Xt-1=Sunny, Xt-2=Sunny=0.95 PXt=Sunny|Xt-1=Sunny, Xt-2=Rainy=0.80…

Q: 19. Over the next ten years, Town A is expected to gain 1,000 people each year. During the same time…

Q: 4. A fast-food chain has many hundreds of franchises nationwide. Ideally, each franchise would…

Q: a) If an ELT is randomly selected from the general population of all ELTs, find the probability that…

A: Given: Altigauge manufacturing company (A) produces 80% of the ELTs, Bryant company (B) produces…

Q: Meier and Frank is a chain of department stores located in the Northwest. The company has issued…

A: Given, You randomly select 100 credit cards issued three years previously. Of the 70 individuals…

Question

5. Markov's Chains

Once a year employees at a company are given the opportunity to join one of three pension plans, A, B, or C. Once an employee decides to join one of these plans, the employee cannot drop the plan or switch to another plan. Past records indicate that each year 4% of the employees elect to join plan A, 14% elect to join plan B, 7% elect to join plan C, and the remainder do not join any plan.

(A) In the long run, what percentage of the employees will elect to join plan A? Plan B? Plan C?

(B) On the average, how many years will it take an employee to decide to join a plan?

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step 3

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 3 steps with 3 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

$Markov Processes and Markov chain$

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, probability and related others by exploring similar questions and additional content below.

Similar questions

8. Individual Problems 20-4 Suppose that every driver faces a 4% probability of an automobile accident every year. An accident will, on average, cost each driver $5,000. Suppose there are two types of individuals: those with $30,000.00 in the bank and those with $2,500.00 in the bank. Assume that individuals with $2,500.00 in the bank declare bankruptcy if they get in an accident. In bankruptcy, creditors receive only what individuals have in the bank. Assume that both types of individuals are only slightly risk averse. In this scenario, the actuarially fair price of full insurance, in which all damages are paid by the insurance company, is $ Assume that the price of insurance is set at the actuarially fair price. At this price, drivers with $30,000.00 in the bank likely v buy insurance, and those with $2,500.00 in the bank likely buy insurance. (Hint: For each type driver, compare the price of insurance to the expected cost without insurance.) Suppose a state law has been passed…
Many investors and financial analysts believe the Dow Jones Industrial Average (DJIA) gives a good barometer of the overall stock market. On January 31, 2006, 9 of the 30 stocks making up the DJIA increased in price (The Wall Street Journal, February 1, 2006). On the basis of this fact, a financial analyst claims we can assume that 30% of the stocks traded on the New York Stock Exchange (NYSE) went up the same day.A sample of 80 stocks traded on the NYSE that day showed that 11 went up.You are conducting a study to see if the proportion of stocks that went up is is significantly less than 0.3. You use a significance level of α=0.02α=0.02.What is the test statistic for this sample? (Report answer accurate to three decimal places.)test statistic = What is the p-value for this sample? (Report answer accurate to four decimal places.)p-value = The p-value is... less than (or equal to) αα greater than αα This test statistic leads to a decision to... reject the null accept the null fail…
At Oriole Company, events and transactions during 2020 included the following. The tax rate for all items is 40%.(1) Depreciation for 2018 was found to be understated by $ 151000.(2) A strike by the employees of a supplier resulted in a loss of $ 125100.(3) The inventory at December 31, 2018 was overstated by $ 201000.The effect of these events and transactions on 2020 income from continuing operations net of tax would be
Kanish Bha Topic 3 Homework Close Date: Thu, Sep 23, 2021, 11:59 PM Question 7 of 8 Last year, Reliable Securities established a sales achievement bonus fund of $16,000 to be distributed at the year's end among its four-person mutual fund sales force. The distribution is to be made in the same proportion as the amounts by which each person's sales exceeds the basic quota of $500,000 (with no bonus if the quota is not met). How much bonus will each salesperson receive from the fund if the sales figures for the year were $990,000 for Alicia, $760,000 for Bob, $430,000 for Charles, and $620,000 for Diana?