Om.

Avertz Company rents its fleet of 500 cars. Once a week each car is inspected. During this time it may have been rented or had maintenance performed or both. In the first week in June, it was determined that 400 of the cars were in good working condition. 80 of the cars needed minor repairs, and 20 of the cars needed major repairs. In the second week of June, 350 of the cars that were in good working condition were in the same condition, 40 needed minor repairs, and 10 needed major repairs. Of the 80 cars needing minor repairs, 50 were in good working order, 25 still needed minor repairs, and 5 now needed major repairs. Finally, of the 20 cars needing major repairs, 15 were in good condition, 3 needed minor repairs, and 2 were still in need of major repairs. (a) Set up One Step Transition Matrix for the above problem. (b) What are the expected number of cars in each category in the third week of June