Assuming these percentages remain valid over a long period


Please help with the following problem.

An auto insurance company classifies its customers in three categories: poor, satisfactory, and preferred. Each year, 30% of those in the poor category are moved to satisfactory and 5% of those in the satisfactory category are moved to preferred. Also, 5% 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 =
Satisfactory =
Preferred =

Solution Preview :

Prepared by a verified Expert
Engineering Mathematics: Assuming these percentages remain valid over a long period
Reference No:- TGS01267070

Now Priced at $5 (50% Discount)

Recommended (98%)

Rated (4.3/5)