An auto insurance company classifies its customers in three categories: poor, satisfactory, and preferred. Each year, 40%
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An auto insurance company classifies its customers in three categories: poor, satisfactory, and preferred. Each year, 40% 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% 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 that these percentages remain valid over a long period of time, how many customers are expected in each category in the long run?
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College Mathematics For Business Economics, Life Sciences, And Social Sciences
ISBN: 978-0134674148
14th Edition
Authors: Raymond Barnett, Michael Ziegler, Karl Byleen, Christopher Stocker
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