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A Trailer Rental Company Has Rental and Return Facilities at Both

Question 15

Multiple Choice

A trailer rental company has rental and return facilities at both a north and south location in a city. Assume a trailer must be returned to one or the other of these locations. If a trailer is rented at the north location, the probability that it will be returned there is .6; if a trailer is rented at the south location, the probability it will be returned there is .65. Assume the company rents all of its trailers each day and each trailer is rented (and returned) only once a day. If the company starts with 50% of the trailers at each location, what is the expected distribution (in percentages) the next day?


A) 62.5% of the trailers at the north location; 37.5% of the trailers at the south location
B) 47.5% of the trailers at the north location; 52.5% of the trailers at the south location
C) 52.5% of the trailers at the north location; 47.5% of the trailers at the south location
D) 37.5% of the trailers at the north location; 62.5% of the trailers at the south location

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