Every Week a Charter Plane Brings a Group of High-Stakes

question 48

Short Answer

Every week a charter plane brings a group of high-stakes gamblers into Las Begas.Half the group stays and begins gambling at Hot Slots near the Strip, and the other half is housed and begins gambling at Better Bandits, some distance away.(Both hotel/casinos are owned by the same corporation.)Once an hour, dedicated shuttle buses will transport to the other
casino any of the group members who wish to try their luck at the other casino.The transition probabilities are as follows:
$\begin{array}{c}\text { Next Hour }\\\begin{array}{lcc} &\text { Hot Slots }&\text { Better Bandits }\\\text{This Hot Slots} & .8&.2 & \\\text{Hour Better Bandits} & .3 & .7\end{array}\end{array}$

A.After three hours, what proportion of these gamblers are in the Hot Slots Casino?
B.What is the long run average percentage of these gamblers who
will be at Hot Slots Casino?

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Definitions:

Return on Equity Ratio

The return on equity ratio measures a company's profitability by revealing how much profit a company generates with the money shareholders have invested.

Total Asset Turnover

A financial ratio that measures the efficiency of a company's use of its assets in generating sales revenue by comparing sales with total assets.

Current Ratio

An indicator used to evaluate whether a business can meet its short-term financial liabilities, calculated through the division of its current assets by its current liabilities.

Return on Equity

A financial ratio measuring the profitability of a business in relation to the equity held by the shareholders.