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1.28. A midwestern university has three types of health plans: a health maintenance organization (HM O), a preferred provider organization (P P O), and a
traditional fee for service plan (F F S ). Experience dictates that people change
plans according to the following transition matrix
.6 67 1.12. EXERCISES In 2000, the percentages for the three plans were HM O:30%, P P O:25%, and
F F S :45%. (a) What will be the percentages for the three plans in 2001? (b)
What is the long run fraction choosing each of the three plans?
1.29. Bob eats lunch at the campus food court every week day. He either eats
Chinese food, Quesadila, or Salad. His transition matrix is
C .15 .6
Q .4 .1
S .1 .3 S
.6 He had Chinese food on Monday. (a) What are the probabilities for his three
meal choices on Friday (four days later). (b) What are the long run frequencies
for his three choices?
1.30. The liberal town of Ithaca has a “free bikes for the people program.”
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- Spring '10
- The Land