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 90% chance of moving to the high-risk category the next year and a 10% chance of remaining in the low-risk category. In the long term, what percentage of
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 90% chance of moving to the high-risk category the next year and a 10% chance of remaining in the low-risk category. In the long term, what percentage of
Glencoe Algebra 1, Student Edition, 9780079039897, 0079039898, 2018
18th Edition
ISBN:9780079039897
Author:Carter
Publisher:Carter
Chapter10: Statistics
Section10.6: Summarizing Categorical Data
Problem 27PPS
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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 90% chance of moving to the high-risk category the next year and a 10% 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 %
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