SOLUTION: A credit card company classifies its consumers in a given month in three groups; nonusers, light users, and heavy users. The transition matrix for these states is
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Question 300874: A credit card company classifies its consumers in a given month in three groups; nonusers, light users, and heavy users. The transition matrix for these states is
Nonuser Light Heavy
Suppose the initial distribution for the three states is [0.4 0.4 0.2]. Find the distribution after each of the following periods.
(a) 1 month
(b) 2 months
(c) 3 months
(d) What is the long-range prediction for the distribution of users?
