Answer:
Suppose the fraction of blue balls at any given state n is [tex]f_{n}[/tex]. At the start of the process we have: [tex]f_{0}[/tex]=1.
Now consider the situation after having drawn n times.
The current fraction of blue balls is [tex]f_{n}[/tex], the number of blue balls is therefore 10[tex]f_{n}[/tex].
We either draw a red ball, with probability 1−[tex]f_{n}[/tex]. and the number of red balls, blue balls stay the same (we swap red for red):
[tex]f_{n+1}[/tex](red)=[tex]f_{n}[/tex]
or we draw a blue ball, with probability [tex]f_{n}[/tex] and we obtain 10[tex]f_{n}[/tex]−1 blue balls on a total of 10 balls, thus:
[tex]f_{n+1}[/tex](blue) = (10[tex]f_{n}[/tex]− 1)/10
The total probability of (fraction of) blue balls after this n'th draw is therefore:
[tex]f_{n+1}[/tex]=[tex]f_{n+1}[/tex](red)(1−[tex]f_{n}[/tex])+[tex]f_{n+1}[/tex](blue)[tex]f_{n}[/tex]
which can be simplified to:
[tex]f_{n+1}[/tex]=0.9[tex]f_{n}[/tex]
which leads to:
fn=0.9[tex]f_{n}[/tex]
At the end of the 10'th draw the fraction of blue balls is equal to:
[tex]f_{10}[/tex] = [tex]0.9^{10}[/tex] ≈ 0.348678