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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
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 090 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 | 090 Days | Bad Debts |
---|---|---|---|
From Paid Up | 0.5 | 0.5 | 0 |
090 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.)
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