Question: This was the solution I received, but I don't understand how the distribution was found from the percentage found below: If the cars are evenly

This was the solution I received, but I don't understand how the distribution was found from the percentage found below:

If the cars are evenly distributed among the 4 possibilities on a given day, we can assume that there are 25% of cars at each location (since 30% are still on loan). Using the given return statistics, we can calculate the distribution of cars the next day as follows:

  • For cars rented from location 1:
    • 45%*25% = 11.25% returned to location 1
    • 25%*10% = 2.5% returned to location 2
    • 15%*10% = 1.5% returned to location 3
    • 45%*25% = 11.25% still on loan
  • For cars rented from location 2:
    • 10%*25% = 2.5% returned to location 1
    • 25%*25% = 6.25% returned to location 2
    • 20%*25% = 5% returned to location 3
    • 45%*25% = 11.25% still on loan
  • For cars rented from location 3:
    • 15%*25% = 3.75% returned to location 1
    • 15%*25% = 3.75% returned to location 2
    • 35%*25% = 8.75% returned to location 3
    • 35%*25% = 8.75% still on loan
  • For cars still on loan:
    • 50%*25% = 12.5% returned to location 1
    • 15%*25% = 3.75% returned to location 2
    • 10%*25% = 2.5% returned to location 3
    • 25%*25% = 6.25% still on loan

Therefore, the distribution of cars the next day would be:

  • 16.5% at location 1
  • 13% at location 2
  • 18.75% at location 3
  • 51.75% still on loan

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