Question

A popular app, Zolo, has come on the market for streaming pet-friendly music while others in the household are away from home for work or errands. Every month, the app attracts 70% of non-subscribing households; in other words, these households decide to subscribe. Meanwhile, 40% of already subscribing households decide to unsubscribe each month. Suppose 40% of households are current subscribers. Using the probabilities and states as described, what percentage of households will likely be subscribers two months from now? (Enter numerical value only. Do not enter % sign. Round the percentage to 1 decimal place, or to the nearest tenth of a percent.)

Answer 1

Explanation:

Each month, 20% of non-subscribing households become subscribers, and 70% of already subscribing households decide to unsubscribe. Starting with an initial 40% of households being current subscribers, we can determine that the final percentage is approximately 45.5%.