A cell phone provider classifies its customers as Low users (less than 400 minutes per month) or High users (400 or more minutes per month). Studies have shown that 80% of the people who were Low users one month will be Low users the next month, and that 70% of the people who were High users one month will be High users the next month.
(a) Set up the 2 × 2 stochastic matrix with columns and rows labeled L and H that displays these transitions.
(b) Suppose that, during the month of January, 50% of the customers were Low users. What percent of the customers will be Low users in February? In March?