{
 "cells": [
  {
   "cell_type": "markdown",
   "metadata": {},
   "source": [
    "# Replacing a car\n",
    "## Problem definition\n",
    "At the beginning of each year, a car is in good, regular or bad state: \n",
    "\n",
    "- There is a 90% probability that a good car will be in a good state at the beginning of next year \n",
    "\n",
    "- There is a 5% probability that it will be in a regular state\n",
    "\n",
    "- and a 5 % probability that it will be in bad state. \n",
    "\n",
    "If a car is in a regular state, then:\n",
    "\n",
    "- There is a 70 % probability that the car is in again in regular state at the beginning of next year,\n",
    "- and a 30 % probability that it will be in a bad state.\n",
    "\n",
    "A bad car has no sale value and must be immediately replaced with a good one.\n",
    "\n",
    "It costs €12,000 to buy a good car, but a regular one can be found for €5,000.\n",
    "Maintenance costs are €1,000/year for a good car and €2,000 for a regular car, and must be paid upfront at the beginning of the year.\n",
    "\n",
    "Must I replace my car as soon as it is in a regular state, or must I wait until it is in a bad state?"
   ]
  }
 ],
 "metadata": {
  "kernelspec": {
   "display_name": "Python 3",
   "language": "python",
   "name": "python3"
  },
  "language_info": {
   "codemirror_mode": {
    "name": "ipython",
    "version": 3
   },
   "file_extension": ".py",
   "mimetype": "text/x-python",
   "name": "python",
   "nbconvert_exporter": "python",
   "pygments_lexer": "ipython3",
   "version": "3.7.4"
  }
 },
 "nbformat": 4,
 "nbformat_minor": 2
}