Concept explainers
Homeowner's insurance. In a given city, the market for homeowner’s insurance is dominated by two companies: National Property and United Family. Currently, National Property insures
(A) Draw a transition diagram.
(B) Write the transition matrix.
(C) What percentage of homes will be insured by National Property next year? The year after next?
(D) What percentage of homes will be insured by United Family next year? The year after next?
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