A major bank BKR Ltd calculates the credit ratings of its credit card customers on a monthly basis. The ratings are poor, good and excellent...

      

A major bank BKR Ltd calculates the credit ratings of its credit card customers on a monthly basis. The ratings are poor, good and excellent depending on the payment history. The following matrix shows how the customers change from one category to the other in one month.
bkr12022019322.png

Required:
i) Interpret the elements 0.84, 0.2, 0.18 and 0.16. (4 marks)
ii) Given that in August 2003, from customer base of 100,000 the accountswere classified as
Poor 30,000
Good 50,000
Excellent 20,000
What is expected in October?

  

Answers


Wilfred
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bkr32022019326.png
Wilfykil answered the question on February 20, 2019 at 11:26


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