Rent-To-Keep rents household furnishings by the month. At the end of a rental month a customer can: a) rent the item for another month, b) buy the item, or c) return the item. The matrix below describes the month-to-month transition probabilities for 32-inch stereo televisions the shop stocks. $$\begin{array} { c | c c c }
\text { This } & { \text { Next Month } } \
\text { Month } & \text { Rent } & \text { Buy } & \text { Return } \
\hline \text { Rent } & .72 & .10 & .18 \
\text { Buy } & 0 & 1 & 0 \
\text { Return } & 0 & 0 & 1
\end{array}$$ What is the probability that a customer who rented a TV this month will eventually buy it?

Question

Rent-To-Keep rents household furnishings by the month. At the end of a rental month a customer can: a) rent the item for another month, b) buy the item, or c) return the item. The matrix below describes the month-to-month transition probabilities for 32-inch stereo televisions the shop stocks. $$\begin{array} { c | c c c } 
\text { This } & { \text { Next Month } } \
\text { Month } & \text { Rent } & \text { Buy } & \text { Return } \
\hline \text { Rent } & .72 & .10 & .18 \
\text { Buy } & 0 & 1 & 0 \
\text { Return } & 0 & 0 & 1
\end{array}$$ What is the probability that a customer who rented a TV this month will eventually buy it?

Quizplus · Accepted Answer

The Answer of Rent-To-Keep rents household furnishings by the month. At the end of a rental month a customer can: a) rent the item for another month, b) buy the item, or c) return the item. The matrix below describes the month-to-month transition probabilities for 32-inch stereo televisions the shop stocks. $$\begin{array} { c | c c c } 
\text { This } & { \text { Next Month } } \
\text { Month } & \text { Rent } & \text { Buy } & \text { Return } \
\hline \text { Rent } & .72 & .10 & .18 \
\text { Buy } & 0 & 1 & 0 \
\text { Return } & 0 & 0 & 1
\end{array}$$ What is the probability that a customer who rented a TV this month will eventually buy it?

Rent-To-Keep Rents Household Furnishings by the Month What Is the Probability That a Customer Who Rented a of a Rental