Question

As the manager of a large retailing outlet, you have classified all credit customers as falling into one of the following categories: Paid Up, Outstanding 0–90 Days, Bad Debts. Based on an audit of your company's records, you have come up with the following table, which gives the probabilities that a single credit customer will move from one category to the next in the period of 1 month.

To	Paid Up	0–90 Days	Bad Debts
From   Paid Up	0.5	0.5	0
0–90 Days	0.5	0.2	0.3
Bad Debts	0	0.5	0.5

How do you expect the company's credit customers to be distributed in the long term? (Round your answer to two decimal places.)

Paid Up ___ %

0–90 Days ___ %

Bad Debts ___ %

Answer 1