The probability that a car owner will become a car renter in five years is 0.03. The probability that a renter will become an owner in five years is 0.1. Suppose the proportions in the population are 64% owners (O), 35.5% renters (R) and .5% neither (N) with the following transition matrix.
A) [0.666 0.333 0.001]
B) [0.94 0.879 0.001]
C) [0.64 0.355 0.005]
D) [0.94 0.06 0]

Question

The probability that a car owner will become a car renter in five years is 0.03. The probability that a renter will become an owner in five years is 0.1. Suppose the proportions in the population are 64% owners (O), 35.5% renters (R) and .5% neither (N) with the following transition matrix. 
A) [0.666 0.333 0.001] 
B) [0.94 0.879 0.001] 
C) [0.64 0.355 0.005] 
D) [0.94 0.06 0]

Quizplus · Accepted Answer

The Answer of The probability that a car owner will become a car renter in five years is 0.03. The probability that a renter will become an owner in five years is 0.1. Suppose the proportions in the population are 64% owners (O), 35.5% renters (R) and .5% neither (N) with the following transition matrix. 
A) [0.666 0.333 0.001] 
B) [0.94 0.879 0.001] 
C) [0.64 0.355 0.005] 
D) [0.94 0.06 0]

The Probability That a Car Owner Will Become a Car