Question

each American family is classified as living in an urban, rural, or suburban location. During a given year, 10% of all urban families move to a suburban location, and 5% move to a rural location; also, 10% of all suburban families move to an urban location, and 4% move to a rural location; finally, 4% of all rural families move to an urban location, and 6% move to a suburban location. 1- If a family now lives in an urban location, what is the probability that it will live in an urban area two years from now? A suburban area? A rural area? 2- Suppose that at present, 45% of all families live in an urban area, 30% live in a suburban area, and 25% live in a rural area. Two years from now, what percentage of American families will live in an urban area?

Answer 1