The Following Diagram Shows the Movement of U $a = 28.8 \%$

Essay

The following diagram shows the movement of U.S. households among three income groups - affluent, middle class, and poor - over the 11-year period 1978-1989.
? $a = 28.8 \%$ , $b = 7.2 \%$ , $c = 30.1 \%$ , $d = 8.3 \%$ ?
Use the transitions shown in the diagram to construct a transition matrix (assuming zero probabilities for the transitions between affluent and poor).

Take 1 = Affluent, 2 = Middle class, 3 = Poor.

Assuming that the trend shown was to continue, what percent of households classified as affluent in 1978 were predicted to become poor in 2000 (Give your answer to the nearest 0.1%.)

The answer is __________%

According to the model, what percentage of all U.S. households will be in each income bracket in the long term (Give your answers to the nearest 0.1 percent.)

Percent of affluent is __________%

Percent of middle class is __________%

Percent of poor is __________%