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MY NOTES ASK YOUR TEACHER An auto insurance company classifies each motorist as "high risk" if the motorist has had at least one moving violation during the past calendar year and "low risk" if the motorist has had no violations during the past calendar year. According to the company's data, a high-risk motorist has a 50% chance of remaining in the high-risk category the next year and a 50% chance of moving to the low-risk category. A low-risk motorist has a 30% chance of moving to the high-risk category the next year and a 70% chance of remaining in the low-risk category. In the long term, what percentage of motorists fall in each category? (Round your answers to two decimal places.) high-risk category low-risk category Need Help? Master It Read It

MY NOTES ASK YOUR TEACHER An auto insurance company classifies each motorist as "high risk" if the motorist has had at least one moving violation during the past calendar year and "low risk" if the motorist has had no violations during the past calendar year. According to the company's data, a high-risk motorist has a 50% chance of remaining in the high-risk category the next year and a 50% chance of moving to the low-risk category. A low-risk motorist has a 30% chance of moving to the high-risk category the next year and a 70% chance of remaining in the low-risk category. In the long term, what percentage of motorists fall in each category? (Round your answers to two decimal places.) high-risk category low-risk category Need Help? Master It Read It

Calculus For The Life Sciences
Calculus For The Life Sciences
2nd Edition
ISBN:9780321964038
Author:GREENWELL, Raymond N., RITCHEY, Nathan P., Lial, Margaret L.
Publisher:GREENWELL, Raymond N., RITCHEY, Nathan P., Lial, Margaret L.
Chapter12: Probability
Section12.2: Introduction To Probability
Problem 52E
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MY NOTES ASK YOUR TEACHER An auto insurance company classifies each motorist as "high risk" if the motorist has had at least one moving violation during the past calendar year and "low risk" if the motorist has had no violations during the past calendar year. According to the company's data, a high-risk motorist has a 50% chance of remaining in the high-risk category the next year and a 50% chance of moving to the low-risk category. A low-risk motorist has a 30% chance of moving to the high-risk category the next year and a 70% chance of remaining in the low-risk category. In the long term, what percentage of motorists fall in each category? (Round your answers to two decimal places.) high-risk category low-risk category % Need Help? Master It Read It
Transcribed Image Text:MY NOTES ASK YOUR TEACHER An auto insurance company classifies each motorist as "high risk" if the motorist has had at least one moving violation during the past calendar year and "low risk" if the motorist has had no violations during the past calendar year. According to the company's data, a high-risk motorist has a 50% chance of remaining in the high-risk category the next year and a 50% chance of moving to the low-risk category. A low-risk motorist has a 30% chance of moving to the high-risk category the next year and a 70% chance of remaining in the low-risk category. In the long term, what percentage of motorists fall in each category? (Round your answers to two decimal places.) high-risk category low-risk category % Need Help? Master It Read It
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